Anglo hires banks to sell up to 50% of Minas Rio iron ore
Anglo American (LON: AAL) is said to have hired Goldman Sachs Group Inc., Morgan Stanley and UBS AG to sell up to 50% of its Minas-Rio iron-ore project in Brazil, considered the most expensive iron ore endeavour on the planet.
According to sources quoted by Bloomberg, the London-based miner wants to sell at least a 30% stake in the project, with private-equity funds and Asian companies already expressing interest.
Minas Rios, Anglo’s major capital allocation fiascos of recent years, forced the company to take a $4 billion writedown early this year and it was largely responsible for former CEO Cynthia Carroll's deteriorating image.
Despite Minas Rio's logistical headaches, and the fact the now nearly $9 billion project has tripled its initial projected cost, Anglo said earlier this month it would go ahead with it in the hope that China's "voracious demand for steel" will remain as such.
In January this year, Anglo sold a 70% stake in an iron ore operation in Amapa, northern Brazil, to Zamin Ferrous Ltd.
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