Anglo American PLC (AAUK)

    Anglo American reportedly to acquire stake in Brazil miner MMX


    SAO PAULO (MarketWatch) -- Anglo American PLC (AAUK: anglo amern plc adr new) is in advanced talks to acquire a relevant stake in Brazilian mining and metals company MMX Mineracao e Metalicos SA (MMXM3.BR), according to reports Thursday in local newspapers O Estado de Sao Paulo and Valor Economico.
    According to the Estado de Sao Paulo report, Anglo American already agreed to pay $5.5 billion for an undisclosed stake in MMX.
    The total value of the deal also includes an offer to acquire outstanding shares from MMX minority shareholders, according to the Valor Economico report.
    MMX officials were not available to comment.
    In 2006, Anglo American acquired a 49% stake in MMX's Sistema Minas-Rio for approximately $1.2 billion.
    MMX's Sistema Minas-Rio is the company's most ambitious mining project, with total investments of about $2.35 billion. The investments include development of the Minas mine in Brazil's Minas Gerais state, as well as a slurry pipeline and port facilities.
    The Minas mine is expected to produce 26.6 million metric tons of iron ore when it reaches full capacity by 2011. Initial output of 8 million tons is expected by the fourth quarter of 2009.
    MMX is controlled by Brazilian businessman Eike Batista and operates in the Brazilian states of Amapa, Mato Grosso do Sul, and Minas Gerais.
    MMX debuted on the Bovespa in July, 2006, raising 1.12 billion Brazilian reals ($632 million) from its initial public offering. The company used the proceeds to develop its three mining units in Brazil.
    On Wednesday, MMX's shares closed at BRL860.00 on the Sao Paulo Stock Exchange, or Bovespa.
    -Contact: 201-938-5400 End of Story

    Foreign producers break ground as gold prices rise


    SAN FRANCISCO (MarketWatch) - China became the world's largest gold producer last year, helped by Canadian- and Australian-led projects that aim to add millions in ounces to the world gold supply.


    ...


    The ranking pushes South Africa into second place, the first time the gold giant has lost its top ranking since 1905, GFMS said. South Africa, whose late 19th century gold rush led to the founding of mining heavyweight Anglo American Plc (AAUK: anglo amern plc adr new) (UK:AAL) and is home to global producers Gold Fields Ltd. (GFI: gold fields ltd new sponsored adr) (ZA:GFI) and AngloGold Ashanti Ltd. (AU: anglogold ashanti ltd sponsored adr) (ZA:ANG) , saw its production decline 8% to 272 metric tons.

    JOHANNESBURG (MarketWatch) -- Kumba Iron Ore Ltd. (KIO.JO), majority owned by Anglo American PLC (AAUK: anglo amern plc adr new) , Friday said its annual earnings will be down by as much as 12% on 2006.
    The South African iron ore concern in a statement to the Johannesburg securities exchange said it expects basic earnings for 2007 of between 2.96 billion rand ($420 million) and ZAR3.15 billion, which compares with a pro forma ZAR3.38 billion the year before.
    Still, the company expects headline earnings - the figure generally followed by South African analysts and which strip out non-operating, capital and certain other items - to be within the same range, which would mark growth of 39% to 48% on ZAR2.13 billion in 2006.
    By 0915 GMT, shares in Africa's largest producer of the raw material used in the production of steel were trading down ZAR9.50, or 3.6%, at ZAR257.50, roughly in line with a decline in Johannesburg's resource sector.
    The stock has more than doubled over the last year as Kumba and other iron ore producers have benefited from strong demand driven by booming economies such as China's.
    Kumba was formed in the November 2006 breakup of Kumba Resources Ltd. that also created coal and base metals producer Exxaro Resources Ltd. (EXX.JO). Anglo American owns an almost 64% interest in the company.
    Kumba is scheduled to release its annual results Feb. 14.
    In the first half of 2007, Kumba reported a 38% rise in net profit to ZAR1.58 billion and a 35% increase in revenue to ZAR5.43 billion as it benefited from an increase in average iron ore prices.
    Company Web site: http://www.kumba.co.za

    The British mining company Anglo American is in exclusive negotiations to pay $5.5 billion for control of iron ore projects owned by the Brazilian mining concern MMX Mineração e Metálicos, the companies said. Under terms of a complex deal, Anglo American would buy the MMX shares owned by a Brazilian businessman, Eike F. Batista, and secure control of the company’s Minas-Rio and Amapa ore mines in Brazil, the companies said. Anglo American said the talks focused on the acquisition of Mr. Batista’s 63.6 percent share in what would be a new company broken off from MMX. That company would own MMX’s current 51 percent interest in Minas-Rio and 70 percent interest in Amapa. Anglo American would also pay royalties to MMX for the Minas-Rio project beginning in 2025 and beginning in 2023 for Amapa.

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