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Send  Print  Share  RSS  Twitter  15 Nov 2010

Anglo Sells Moly-Cop, AltaSteel for $932m


Johannesburg, Nov 15 (I-Net Bridge) - Global resources giant Anglo American plc (AGL) is to sell Moly-Cop and AltaSteel to OneSteel for a total consideration of $932 million on a debt and cash free basis.

Moly-Cop and AltaSteel consist of the grinding media and steel products businesses of Anglo American located in North and South America, and includes the joint venture interests in the Donhad grinding media business in Australia and GenAlta Recycling Inc. in Canada. The business was previously managed as part of the wider Scaw Metals Group.

Moly-Cop is headquartered in Santiago, Chile and is a global manufacturer of grinding media, with facilities in Chile, Peru, Mexico and Canada. These facilities convert steel bars supplied by both AltaSteel and external steel suppliers into grinding balls for use in mine milling circuits.

AltaSteel is based in Edmonton, Canada and is a vertically-integrated steel mini-mill, which is supplied with scrap steel by Maple Leaf Metals (wholly-owned) and GenAlta (50%-owned). AltaSteel's products are ballstock (feedstock for grinding ball plants), heat-treated grinding rods for use in rod mills and reinforcing bars.

The business also includes a 40% interest in Donhad, a joint venture with Delta Group Australia Donhad is managed by Delta and serves the Australian grinding media market.

Anglo Chief Executive Cynthia Carroll said: "Following the $1.3 billion divestment of our Zinc portfolio in May 2010, 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."

Geoff Plummer, CEO of OneSteel, said: "This is a significant milestone for the company and positions OneSteel as a global player in grinding media with participation in the world's largest and most attractive mining consumables markets, as well as providing OneSteel with 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 will continue to progress its divestment programme announced in October 2009 in a manner and to a timetable that maximises value to its shareholders. This programme includes the sale of the Scaw Metals Group based in South Africa, it said.

I-Net Bridge, Tel: +27-11-280-0644,

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