Global miner Anglo American raised the estimated cost of its problematic Minas Rio iron ore project on Tuesday, telling investors it was unlikely to cost less than $8 billion, the higher end of analyst forecasts.
Analysts have long said spending at the Brazilian project could rise to at least $8 billion from previous Anglo forecasts of $5.8 billion, already twice original estimates.
“Anglo American is carrying out a detailed cost review to assess the impact of the already announced delay and the other disruptive challenges faced by the project which include high cost inflation across the construction industry in Brazil,” Anglo said.
“The review includes an independent external assessment commissioned by the board.”
Anglo said it would provide further detail once the cost review has been completed. - Reuters