(Updates with Castellari biography in fifth paragraph.)
Dec. 7 (Bloomberg) -- Anglo American Plc, the mining company investing $14 billion in projects in Brazil, is replacing the head of its iron-ore unit in the Latin American country, a person with knowledge of the situation said.
Stephan Weber, who has headed Anglo’s iron-ore business in Brazil since 2009, will leave the company, the person said, declining to be identified because the company hasn’t made the information public. Paulo Castellari, currently the unit’s commercial director, will replace Weber, the person said.
Anglo is investing $5 billion in its Minas Rio iron-ore project in Brazil, which has suffered delays and cost overruns since its acquisition in 2008. The project will have initial annual capacity of 26.5 million metric tons and the company expects its first shipment in the second half of 2013.
Fernanda Lima, an Anglo official in Brazil, wasn’t immediately available for comment when phoned outside of regular business hours.
Castellari was trained in administration at the Getulio Vargas Foundation and strategic planning at the London Business School and has held several positions within Anglo since 1996. He was appointed commercial director of the Brazilian iron-ore unit this year, according to Anglo’s website.
Weber, 49, a former executive at Rio Tinto Group, joined Anglo in January 2009, becoming chief executive of the unit in August that year, according to the website. He is also a member of Anglo’s executive committee.
Minas Rio Project
The Minas Rio project includes a mine, a processing plant and a 326-mile (525-kilometer) pipeline to the Acu Port in Rio de Janeiro state. The company is studying expanding the project to produce about 80 million tons a year, Weber said in a presentation in Brasilia on Nov. 23.
Anglo faced delays in getting permits and project design changes that boosted the cost of developing Minas Rio from an estimated investment of $3.8 billion in February 2010. The company also pushed back the start date to 2013 from 2010.
In Brazil, Anglo also operates the $1.9 billion Barro Alto nickel project, which started production in March and expects to reach 41,000 tons of annual production in 2013 after attaining full capacity in the second half of next year. The miner also has phosphate and niobium businesses after reversing a decision to sell its Copebras SA and Mineracao Catalao units.
Anglo fell 0.3 percent to 2,494.5 pence at the close in London yesterday, taking this year’s decline to 25 percent.
--Editors: Andrew Hobbs, Rebecca Keenan
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