Global resources giant Anglo American plc said Tuesday it has completed the sale of Moly-Cop and AltaSteel to OneSteel Limited for cash proceeds of US$1.076 billion.
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 adjustments.
Moly-Cop and AltaSteel consist of the grinding media and steel products businesses of Anglo American located in North and South America, and includes the joint venture interests in the Donhad grinding media business in Australia and GenAlta Recycling Inc. in Canada. The business was previously managed as part of the wider Scaw Metals Group.
Moly-Cop is headquartered in Santiago, Chile and is a global manufacturer of grinding media, with facilities in Chile, Peru, Mexico and Canada. These facilities convert steel bars supplied by both AltaSteel and external steel suppliers into grinding balls for use in mine milling circuits.
AltaSteel is based in Edmonton, Canada and is a vertically-integrated steel mini-mill, which is supplied with scrap steel by Maple Leaf Metals (wholly-owned) and GenAlta (50%-owned). AltaSteel's products are ballstock (feedstock for grinding ball plants), heat-treated grinding rods for use in rod mills and reinforcing bars.
The business also includes a 40% interest in Donhad, a joint venture with Delta Group Australia Donhad is managed by Delta and serves the Australian grinding media market.
Announcing the proposed sale of the businesses in November 2010, Anglo Chief Executive Cynthia Carroll said that following the $1.3 billion divestment of the group's zinc portfolio in May 2010, the sale of Moly-Cop and AltaSteel represents further strategic progress as it continues to focus on its core commodity businesses and on the delivery of its major near term growth projects. - I-Net Bridge