Open / Close Advertisement

Anglo American Completes Sale of Moly-Cop and AltaSteel to OneSteel

01/05/2011 - Anglo American plc has completed its sale of Moly-Cop and AltaSteel to OneSteel Limited of Australia for cash proceeds of US$1,076 million.

As a result of the acquisition, OneSteel will establish a separate Mining Consumables segment for reporting purposes.
 
The segment will include the acquired businesses, OneSteel’s Waratah, Newcastle facilities, which include the grinding media and rail wheel businesses, OneSteel’s existing grinding media businesses in the United States and Indonesia, and the wire ropery at Newcastle.
 
Andrew Roberts has been appointed Chief Executive of the new Mining Consumables segment. Leo Selleck will take over from Andrew as Chief Executive Market Mills.
Anglo American plc has completed its sale of Moly-Cop and AltaSteel to OneSteel Limited of Australia for cash proceeds of US$1,076 million.

 
Anglo American announced the sale of Moly-Cop and AltaSteel to OneSteel on 14 November 2010 for a total consideration of US$932 million on a debt and cash free basis. The total cash proceeds amount includes the cash and debt in the business and certain adjustments1.
 
Based in Chile, Moly-Cop manufactures of forged steel heat-treated grinding tools or media such as heat-treated grinding balls, which are used in the extraction of minerals from ore, particularly in the fast growing copper and gold mining industries.
 
Molycop’s facilities are located in Chile, Peru, Mexico and Canada while AltaSteel, a vertically-integrated steel minimill, is located in Canada.
 
Included in the assets to be acquired from Anglo American plc is a 40% shareholding in the Donhad grinding media business in Australia and GenAlta in Canada. The ACCC has accepted an undertaking from OneSteel to hold this shareholding separate from its own businesses and divest the interest in Donhad.
 
The acquisition, together with OneSteel’s existing grinding media production facilities in Australia, the United States and Indonesia, will provide OneSteel with global scale in the growing grinding media market. The acquisition will also provide OneSteel with strong positions in new and attractive regions, and will leverage OneSteel’s core capabilities including product, technical and customer knowledge in mining consumables.
 
OneSteel is a fully integrated, global manufacturer and distributor of steel and finished steel products, self-sufficient in both iron ore and scrap metal, with revenues in excess of $6 billion Australian dollars. OneSteel's major manufacturing facilities are located in Whyalla, South Australia, Melbourne, Victoria, Western Sydney and Newcastle, New South Wales and Brisbane, Queensland. Smaller manufacturing and distribution facilities are located throughout regional Australia.
 
Additionally, OneSteel has more than 40 operating facilities in New Zealand, Asia and the Pacific that encompass major manufacturing sites and recycling locations. OneSteel also operates eight facilities in the United States consisting of Grinding Media, LiteSteelTM Technologies, Recycling and a ferrous shredder in Tampa, Florida.
 
In total OneSteel services more than 30,000 customers, offers more than 40,000 products globally and employs over 10,500 people.
 
Anglo American plc, one of the world’s largest mining companies, is headquartered in the UK. Its portfolio of mining businesses spans precious metals and minerals; base metals – copper and nickel; and bulk commodities – iron ore, metallurgical coal and thermal coal. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company’s mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia.