OREANDA-NEWS. On 4 January 2013 Anglo American plc ("Anglo American") announced the sale of its 70% interest in the Amapa iron ore operation in Brazil ("Amapa") to Zamin Ferrous Ltd. ("Zamin"). On 28 March 2013, prior to the completion of that transaction, a major geological event occurred at the Santana port facility which resulted in the destruction of the port shiploader infrastructure and sampling tower and the tragic loss of six lives. In light of these circumstances, Anglo American entered into further discussions with its partner Cliffs Natural Resources ("Cliffs") and Zamin. Anglo American subsequently entered into an agreement with Cliffs to acquire its 30% interest in Amapa and has now agreed to amend the sale agreement with Zamin, including to reflect Anglo American’s disposal of a 100% interest in Amapa to Zamin.

Anglo American has agreed to sell 100% of Amapa to Zamin for an initial total consideration of approximately USD 136 million, subject to certain adjustments at completion plus the repayment of any intercompany balances. In addition, Zamin will pay Anglo American conditional deferred consideration of up to a maximum of USD 130 million in total, payable over a five year period and calculated on the basis of the market price for iron ore. Anglo American will use the proceeds to pay down debt.

As part of the transaction, Anglo American will assume responsibility for, and the risks and rewards of, the insurance claim in relation to the Santana port incident by acquiring the claim at full claim value. After the tragic incident at the Santana port, the successful completion of this transaction will allow a more certain future for all the stakeholders of Amapa and for Anglo American to deliver on its strategic objectives.

The transaction is expected to close by the end of the year and is subject to Amapб state regulatory approval.