Mining major Anglo American (Anglo) would sell its Moly-Cop and AltaSteel to Australian company OneSteel for $932-million.
The two businesses, which are part of Anglo's Scaw Metals, make steel balls and rods that are used to grind up copper and gold ore in the huge rotating mills of mining plants.
Anglo CEO Cynthia Carroll said that following the $1,3-billion divestment of the group's zinc portfolio in May 2010, the sale of Moly-Cop and AltaSteel represented further strategic progress as the group continued to focus on its core commodity businesses and on the delivery of its major near-term growth projects.
Anglo stated that it would continue to progress its divestment programme announced in October 2009, in a manner and to a timetable that would maximise value to its shareholders. The programme included the sale of the Scaw Metals Group based in South Africa.
OneSteel CEO Geoff Plummer said that the deal was a significant milestone for the company and positioned it as a global player in grinding media with participation in the world's largest and most attractive mining consumables markets, as well as providing OneSteel with a platform for future growth in mining consumables.
The acquisitions would provide OneSteel with a further footprint in Australia, South America and North America, and would see it evolving into the world's largest maker of steel grinding material used by mining companies.