Anglo American, one of the largest mining groups, has sold its niobium and phosphates assets in Brazil to the China Molybdenum Group (http://www.chinamoly.com/en/) for US$1.5 billion, according to a statement to the market.
In a statement released Thursday, Anglo American said that this deal still required approval from the regulatory authorities in China and added it was part of the process of selling assets to raise at least US$3 billion to reduce debt levels.
In addition to the sale of these assets in Brazil, which in 2015 generated revenue of US$544 million and a profit of US$119 million, the group also plans to dispose of nickel assets in Brazil and some coal mines in Australia.
Last February Anglo American announced a new strategy to deal with the fall in commodity prices, which involves the concentration of activities in the De Beers diamond business and on platinum and copper mining operations, in order to break away from lower value commodities.
Niobium, known reserves of which are almost exclusively found in Brazil (98.43 percent), is one of the most corrosion resistant metals and is also a superconductor used to produce high strength steel alloys. (macauhub/BR/CN)