Anglo sells off metals assets in $932m deal

City A.M. Reporter
ANGLO American yesterday said it was to sell Scaw Metals assets to Australian steel product manufacturer OneSteel for $932m (£578.3m), a step in an ongoing streamlining programme for the mining group.

Anglo said it was selling Chile-based Moly-Cop and Canada-based AltaSteel, its grinding media and steel products businesses in the Americas.

“Following the $1.3bn divestment of our zinc portfolio in May, the sale of Moly-Cop and AltaSteel represents further strategic progress as we continue to focus on our core commodity businesses and on the delivery of our major near-term growth projects,” chief executive Cynthia Carroll said.

Anglo had previously said it would create seven new decentralised business units and put non-core assets worth about 11 per cent of 2008 core earnings, including Scaw Metals, for sale as it attempted to streamline its business.

OneSteel chief executive Geoff Plummer said the purchase would give the company “a great platform for future growth in mining consumables”.

Under the agreement, economic interest in the business passes to OneSteel with effect from 1 July 2010. Completion of the transaction is conditional on antitrust clearance in Canada and it will undergo regulatory review in Australia and Brazil.

Anglo American said it will continue the divestment programme it announced in October 2009.

Earlier this year Anglo agreed to sell its zinc units to UK rival Vedanta for $US1.3bn (£806.6m). Last year, Anglo-American axed 23,400 jobs and fought off a hostile takeover bid by Swiss miner Xstrata.