Regions

Anglo-American sells interest in Amapa iron ore mine to Zamin Ferrous

November 6
5:33 AM 2013

The mining consortium established by Pramod Agarwal, Zamin Ferrous, had completed the purchase of the Amapa iron ore mine located in Brazil. The seller is British mining company Anglo American for USD134 million or nearly INR832 crore.

The said deal was made public last Monday. In the said announcement, Zamin would also be paying a conditional deferred consideration of nearly USD130 million to Anglo American over a five year period. This amount would be based on the price of iron ore. Zamin further confirmed it had obtained the necessary regulatory approvals for the full acquisition of the mine from Anglo American.

In a statement, Agarwal said, "It (Amapa irone ore mine) is our fourth investment in Brazil." He had spent 30 years in the global commodity industry before establishing Zamin Ferrous back in 2004.

The purchase would amount to 70% of Anglo-American's interest in the mine. Anglo American for its part had always stated it did not envision holding interest in the mine for the long term. Since its acquisition in 2008, the production of the mine was from 1.2 ,million metric tons to 4.8 million metric tons in 2011. 

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