Anglo American has sold its niobium and phosphates business to China Molybdenum for US$1.5 billion.
The miner was first slated to exit it’s the phosphate and niobium operations in Brazil in February, when the assets were estimated to be worth around US$3 billion.
Anglo American will use the proceeds to pay down debt.
The phosphates business consists of a mine, beneficiation plant, two chemical complexes and two further mineral deposits.
The niobium business consists of one mine and three processing facilities, two non-operating mines, two further mineral deposits and sales and marketing operations in the United Kingdom and Singapore.
Together, the businesses generated EBITDA of US$146 million in the year ended 31 December 2015.
Commenting on the sale, Anglo American CEO Mark Cutifani said, “The sale of our niobium and phosphates businesses is another positive step forward in the strategic reshaping of Anglo American that we set out in February.
“The proceeds from this transaction, together with the ongoing productivity and cost improvements we are driving through the business, will enable us to continue to reduce our net debt towards our targeted level of less than $10 billion at the end of 2016. This transaction confirms our commitment to creating the new Anglo American, positioned to deliver robust profitability and cash flows through the price cycle.”
The sale to China Molybdenum is still conditional upon Chinese government approvals, and that of the company’s shareholders.