The international mining group, Zamin Ferrous, has finalized a purchase agreement with Anglo American for the Amapa iron ore mine system in Brazil.
The initial cash consideration is reportedly worth approximately $134 million and Zamin has also announced that it has received the mandatory regulatory approvals for the transaction. The company will pay Anglo American a conditional deferred consideration up to $130 million payable over a five-year period based on the current price of iron ore.
Anglo American has already stated that it will use the money from the transaction to pay down their existing debt.
Anglo American has already stated that it will use the money from the transaction to pay down their existing debt.
Pramod Agarwal, founder of Zamin Ferrous, has commented, “This acquisition is a significant milestone for Zamin in its ambition to become a global player in the iron ore mining industry. In addition to our existing exploration and development activities, we now have a full production asset, which has great potential. It is our fourth investment in Brazil where we already have a proven track record.”