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Anglo American rumoured to exit Brazil

Anglo American may make a complete withdrawal from operations in Brazil, with a number of asserts already up for sale.

A report by Brazillian newspaper O’Globo said the global miner will take bids from the 15th of February for the Minas Rio (iron ore), Barro Alto (nickel) and Copebras (phosphate and niobium) operations.

The assets are estimated to be worth around $US3 billion.

BHP spin-off South32 is expected to make a bid for the entire niobium and phosphate business, which is estimated to be worth around $US1 billion.

The company announced last week it was revising the production strategy from the Minas Rio iron ore complex, however no mention has been made of plans to sell the asset.

Anglo American has already completed its exit from the Middle East, selling its tarmac business to Colas Moyen Orient.

Last year Anglo announced the company would undergo a massive global restructure which would see extensive cost cutting measures, including a reduction of its entire workforce from 135,000 people to 50,000 by 2017.

Anglo recently sold the Australian Callide coal mine to Batchfire Resources, however no valuation was given for the sale, which took place through transferral of shares in subsidiary companies.

A week earlier Anglo sold the Dartbrook coal mine to Nathan Tinkler’s Australian Pacific Coal for approximately $50 million.

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