Anglo says Minas Rio unlikely to cost less than $8 billion

LONDON Tue Nov 13, 2012 8:59am GMT

The AngloAmerican building is seen in Santiago January 24, 2012. REUTERS/Victor Ruiz Caballero

The AngloAmerican building is seen in Santiago January 24, 2012.

Credit: Reuters/Victor Ruiz Caballero

Related Topics



LONDON (Reuters) - Global miner Anglo American (AAL.L) raised the estimated cost of its problematic Minas Rio iron ore project on Tuesday, telling investors it was unlikely to cost less than $8 billion (5.04 billion pounds), the higher end of analyst forecasts.

Analysts have long said spending at the Brazilian project could rise to at least $8 billion from previous Anglo forecasts of $5.8 billion, already twice original estimates.

"Anglo American is carrying out a detailed cost review to assess the impact of the already announced delay and the other disruptive challenges faced by the project which include high cost inflation across the construction industry in Brazil," Anglo said.

"The review includes an independent external assessment commissioned by the board."

Anglo said it would provide further detail once the cost review has been completed.

(Reporting by Clara Ferreira-Marques)


After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.