Anglo America Selling Divisions off to Australian Firm

Anglo American plc, headquartered in London, has announced that it has agreed to sell its Moly-Cop and AltaSteel businesses to Australia-based OneSteel Ltd. for $932 million on a debt and cash free basis. Anglo American is a mining, processing and smelting company.

In announcing the sale, Cynthia Carroll, Anglo American’s chief executive, says "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. I thank the Moly-Cop and AltaSteel management teams and employees for their support during this sale process, and I wish them every success under the ownership of OneSteel."

Moly-Cop, headquartered in Santiago, Chile, is a manufacturer of grinding media. The company has facilities in Chile, Peru, Mexico and Canada. The facilities convert steel bars into grinding bars for use in mine milling circuits.

AltaSteel, based in Edmonton, Alberta, is an integrated steel mini-mill that is supplied with raw material by its scrap metal subsidiary, Maple Leaf Metals.

Geoff Plummer, CEO of OneSteel, says, "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."

In a press announcement, Anglo American notes that it will continue its divestment program, which was first announced in October 2009. The program includes the sale of South Africa-based Scaw Metals Group.

Anglo American is a large mining concern, with operations in Africa, Europe, South and North America, Australia and Asia.

OneSteel Ltd is an integrated, global manufacturer and distributor of steel and finished steel products. The company is headquartered in Australia. In addition to its Australian manufacturing operations and extensive distribution footprint, OneSteel operates nearly 50 facilities outside Australia, with the majority of these including major manufacturing and recycling sites in New Zealand and Asia. Additional facilities in the United States include grinding media, LiteSteel Technologies and recycling operating activities.