REG - Anglo American PLC - Anglo American withdraws from Michiquillay project <Origin Href="QuoteRef">AAL.L</Origin>

Anglo AmericanAnnouncement

05/12/2014 14:10

RNS Number : 0050Z
Anglo American PLC
05 December 2014
5 December 2014
Anglo American confirms decision to withdraw from Michiquillay project in Peru
Anglo American announces that its wholly owned subsidiary, Anglo American Michiquillay S.A., has given notice to the government of Peru to terminate the 2007 privatisation agreement which will result in it withdrawing from the exploration phase Michiquillay copper project. Under the terms of the 2007 privatisation agreement, Anglo American Michiquillay S.A. has begun the appropriate legal processes to return the project to Activos Mineros S.A.C.
In the current economic environment, in which Anglo American is bringing increased focus to its portfolio and prioritising its capital to drive greater returns, Anglo American believes that the prospects for the development of the Michiquillay project would be improved under different ownership.
Anglo American's immediate priority is to ensure a responsible exit from the Michiquillay project, which includes the successful transfer of its role in the existing Michiquillay Social Fund to the government.
Duncan Wanblad, CEO of Anglo American's Base Metals and Minerals business, said: "While Michiquillay represents an attractive copper deposit, we have made the decision to withdraw following a comprehensive evaluation of the potential of our long-dated project options. We have reduced the capital required to sustain projects during the pre-approval phases of their development as we focus the portfolio and prioritise our capital on the projects and assets that offer the greatest source of potential value to us, over the short and long term."
Anglo American continues to progress its Quellaveco copper project in southern Peru and is targeting submission of that project to its Board in 2015.
For further information, please contact:
Media
Investors
UK
James Wyatt-Tilby
Tel: +44 (0)20 7968 8759
UK
Paul Galloway
Tel: +44 (0)20 7968 8718
Emily Blyth
Tel: +44 (0)20 7968 8481
Edward Kite
Tel: +44 (0)20 7968 2178
South Africa
Pranill Ramchander
Tel: +27 (0)11 638 2592
Sarah McNally
Tel: +44 (0)20 7968 8747
Shamiela Letsoalo
Tel: +27 (0)11 638 3112
Notes to editors:
Anglo American is a global and diversified mining business that provides the raw materials essential for economic development and modern life. Our people are at the heart of our business. It is our people who use the latest technologies to find new resources, plan and build our mines and who mine, process and move and market our products - from bulk commodities and base metals to precious metals and diamonds (through De Beers) - to our customers around the world. Our diversified portfolio of products spans the economic development cycle and, as a responsible miner, we are the custodians of precious resources. We work together with our key partners and stakeholders to unlock the long-term value that those resources represent for our shareholders, but also for the communities and countries in which we operate - creating sustainable value and making a real difference. Our mining operations, growth projects and exploration and marketing activities extend across southern Africa, South America, Australia, North America, Asia and Europe.
www.angloamerican.com

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