Anglo's $4bn hit on Minas-Rio
(AAL) revealed a $4bn (£2.53bn) post-tax charge on its Minas-Rio iron ore project in Brazil as capital expenditure for the project is now expected to balloon to $8.8bn, rather than the original $2.6bn estimate. Outgoing chief executive Cynthia Carroll has previously been criticised for paying too much for the mine, at $5.1bn. That would probably have been overlooked but for a series of technical issues that have hampered development. In addition, AAL's subsidiary, Amplats, has temporarily agreed to postpone the proposed retrenchment of 14,000 mine workers to allow for "detailed consultation" involving the African National Congress.
By Mark Robinson,
30 January 2013
More tips and updates for this share