Bloomberg News

Anglo Has Power-Line Permit for Minas-Rio Project Suspended

April 11, 2012

Anglo American Plc (AAL), the mining company with operations from Africa to Chile, had a license for a power line at its Minas-Rio iron-ore project in Brazil suspended.

A Minas Gerais state court suspended the license required to install the line, according to an e-mailed statement by the state prosecutor’s office sent today. Prosecutor Francisco Chaves Generoso told the court in a civil lawsuit that Anglo failed to fulfill some of the conditions to obtain the permit, according to the statement.

Mining companies in Brazil, the world’s second-largest iron-ore exporter, are facing labor shortages and environmental- permit delays. Anglo, which has had time and budget overruns since Minas Rio was bought in 2008, last month suspended work for three days after a regional court ordered it to halt parts of the project to avoid endangering the area’s artistic and cultural heritage.

The permit to build a power-transmission line was the last “big license” required for the iron-ore project before the company applies for authorization to start operating the mine and processing unit, Anglo said on March 16, when it obtained the license.

Power Line

Anglo hasn’t been served notice of the injunction and the company has followed all legal requirements for the environmental licensing of the Minas-Rio project, James Wyatt- Tilby, a company spokesman, said in an e-mail today.

Anglo gained 1.1 percent to 2,225 pence at the close in London today.

The iron-ore project, which includes a mine, processing plant and 326-mile (525-kilometer) pipeline to Acu port in Rio de Janeiro state, will have an initial capacity of 26.5 million metric tons a year. London-based Anglo expects to make the first shipment in the second half of 2013.

To contact the reporters on this story: Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net;


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