Anglo American gets approval to resume Brazil mine construction

Thu Sep 13, 2012 6:12pm EDT

* Archeological sites stopped work in March

* Minas Rio project has faced delays since 2008

* Anglo hopes to ship first ore in 2014

RIO DE JANEIRO, Sept 13 (Reuters) - Anglo American Plc received approval from a Brazilian Court to restart mine construction at its Minas Rio iron ore project, the company said on Thursday.

Work on the mine and processing plant in the towns of Conceicao do Mato Dentro and Dom Joaquim, in Brazil's Minas Gerais state can begin again after construction uncovered sites of potential archeological value.

On March 19, a judge halted works on the mine and processing plant until IPHAN, a Brazilian historical preservation agency gave its approval to proceed. With that approval granted the court allowed work to resume.

Anglo American's Rio project has faced a series of delays since it was purchased for $5.5 billion from Brazilian billionaire Eike Batista's MMX Mineracao e Metais in 2008.

The company, which plans to spend $2 billion on the mine, processing plant and 525 km iron ore pipeline this year, said in July, it hopes to ship its first ore from the mine in 2014.

Minas-Rio, Anglo's biggest iron ore project worldwide, is expected to produce 26.5 Mtpa of iron ore in its first phase. The project includes a mine and a processing plant. (Reporting by Sabrina Lorenzi; Writing by Anna Irrera; Editing by Bernard Orr)

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