Anglo knocks £2.5bn off value of Brazilian mine

 

Anglo American has written down the value of its troublesome Mina-Rio project in Brazil by $4 billion (£2.5 billion) after delays and rising labour costs.

The company said the expense of running the iron-ore mine it bought five years ago is expected to reach a total of $8.8 billion.

Analysts said the project had been a “constant disappointment” since it was acquired from Brazilian billionaire Eike Batista for $5.5 billion in 2008.

Mina-Rio has been described as Cynthia Carroll’s greatest gamble during her time as chief executive.  She is leaving in April after investors called for a change of leadership.

“We are disappointed that the diversity of challenges our Minas Rio project has faced has contributed to a significant increase in capital expenditure,” she said today. “Despite the difficulties, we remain committed to the project.”

Carroll will be succeeded by Mark Cutifani of AngloGold Ashanti.

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