Anglo-American, led by South African exec. Duncan Wanblad, to sell two royalty assets for $195 million

Feyisayo Ajayi -

Key Point

  • Anglo-American, led by Duncan Wanblad initiates definitive asset divestment in two mines to a Singaporean consortium to optimize portfolio and enhance shareholder value.
  • The $195 million upfront cash payment will provide the mining giant with immediate financial flexibility to further commitment to sustainable practices.
  • CEO Duncan Wanblad highlights the importance of portfolio optimization and concentrating resources on core assets with higher growth potential.

Anglo-American, a diversified global mining group led by South African businessman Duncan Wanblad, announced the sale of two royalty stream assets for up to $195 million in cash. The transaction, involving Taurus Funds Management (Taurus), underscores Anglo-American’s strategic focus on optimizing its portfolio and streamlining its asset base.

Anglo-American divests royalty interests for $150 million

The definitive agreements to divest its royalty interests associated with two mines—the Minas Rio iron ore mine in Brazil and the El Soldado copper-gold mine in Chile—to a consortium led by Singapore-based investment firm Pacific Alternative Investment Management (PAIM) entail an upfront cash payment of $150 million and deferred cash consideration of up to $45 million, contingent on certain conditions being met.

Pending regulatory approval, this transaction aligns with Anglo-American’s strategy to focus on core operations and enhance shareholder value. Expected to close in Q4 2024, the deal includes Taurus acquiring the De Beers subsidiary that owns the royalty tied to the Onslow Iron project in West Pilbara, Australia, valued at $125 million upfront with up to $25 million in deferred payments. The sale also includes a royalty related to the Caspiche project in northern Chile, valued at $25 million upfront with up to $20 million in deferred payments.

CEO Duncan Wanblad emphasized the importance of portfolio optimization in the evolving mining landscape. He stated, “This transaction allows us to unlock value from our royalty portfolio while concentrating our resources on high-priority assets.”

The $150 million cash infusion will strengthen Anglo-American’s balance sheet, providing financial flexibility and furthering its commitment to sustainable mining practices and innovation. The strategic divestment highlights Anglo-American’s focus on maintaining a robust and agile portfolio, ensuring long-term growth and sustainability in its core sectors.

Anglo-American optimizes portfolio

Anglo-American, a British multinational mining company, is the world’s largest producer of platinum, diamonds, copper, nickel, iron ore, polyhalite, and steelmaking coal. Founded in 1917 by Ernest Oppenheimer, it has operations in Africa, Asia, Australia, Europe, North America, and South America.

Under Duncan Wanblad, who took over from Australian businessman Mark Cutifani in April 2022, the company has achieved significant milestones. The sale of these two royalty assets marks a significant milestone for Anglo-American, reinforcing its portfolio optimization strategy with a ranking as the 274th largest public company globally.

The company is well-positioned to navigate challenges and opportunities in the mining sector, ensuring long-term value creation for shareholders. The successful execution of this transaction will mark another chapter in Anglo-American’s journey toward sustainable and responsible mining leadership.