Anglo American ships first iron ore cargo from Brazil project

lunes 27 de octubre de 2014 06:05 GYT

* First cargo is en route to China

* Plans to ramp up output to 26.5 million tonnes

* Iron ore prices down 40 pct this year

By Silvia Antonioli

LONDON, Oct 27 (Reuters) - Anglo American shipped the first iron ore cargo from its long-delayed Minas Rio project in Brazil, it said on Monday, injecting more material into an already over supplied market.

The cargo of more than 80,000 tonnes of iron ore is en route to customers in China from the port of Açu in Rio de Janeiro state, the company said.

Minas Rio - the biggest-ever foreign investment in Brazil - had been plagued by delays and cost overruns since Anglo bought it in 2007-2008 from former Brazilian billionaire Eike Batista for about $5.5 billion. The project will end up costing almost $9 billion.

The China delivery is in line with a vow made by Anglo Chief Executive Mark Cutifani after a review last year. While it reflects well on his ability to honour promises, the timing of the delivery is not ideal.

Iron ore prices have shed about 40 percent this year due to more supply from miners Rio Tinto , BHP Billiton and Vale and weak demand growth.   Continuación...