Anglo American secures two big sales deals for Minas Rio iron ore

|About: Anglo American plc (AAUKF)|By:, SA News Editor

Anglo American (AAUKF, AAUKY) says it has secured two large sales agreements for the majority of the forecast 26.5M metric tons of iron ore to be produced from Brazil's Minas Rio project, and says the oft-delayed project remains on course to start commercial production by the end of next year.

Minas Rio should deliver a return on capital employed of 7% or more in 2016, a figure that will continue rise as the project ramps up production, Anglo CFO Rene Medori says at the company's investor day.

Also, Anglo says it is working on a new mine plan that is expected to increase annual copper production at its Quellaveco copper project in Peru by ~25% to 281K tons/year, vs. earlier projections for the mine to produce 225K tons/year during a mine life of more than 30 years.