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Anglo triples Minas-Rio orebody strike length with Serpentina deal
3 Dec 2024
Anglo American has completed its acquisition of the Serpentina iron ore resource, a high-quality deposit from Vale SA, further enhancing its Minas-Rio operation in Brazil. Integrating this resource will transform the scale and potential of Minas-Rio, aligning with Anglo’s commitment to supplying premium-grade iron ore to meet growing demand for greener steelmaking solutions.
The Serpentina deposit holds an estimated mineral resource of 4.3Gt of high-grade iron ore, with an orebody strike length more than twice that of Minas-Rio.
This scale and higher ore grade position Serpentina as a strategic addition, promising a significant increase in Anglo’s production of direct reduction iron (DRI) pellet feed – a key input for decarbonised steelmaking.
"The sheer scale and quality of the Serpentina orebody offer significant opportunities,” explained Anglo American CEO Duncan Wanblad when the deal was first announced in February.
“Integrating this resource into Minas-Rio enables us to create a single optimised operation, reducing costs and capital requirements while positioning us to double premium-grade pellet feed production for decades."
The softer, friable nature of Serpentina’s ore further reduces extraction costs, enhancing operational efficiency.
This, combined with access to Vale’s rail and port logistics, unlocks significant synergies, bypassing the need for a second pipeline to Anglo’s Açu port facility.
Strategic partnership
Under the agreement, Vale receives a 15% stake in the expanded Minas-Rio and an initial cash payment of $157.5m.
Vale also retains the option to acquire an additional 15% interest, although this depends on environmental licensing and the feasibility of future expansions.
The collaboration also allows Anglo to explore alternative transport routes via Vale’s Tubarão port, which could streamline logistics and lower infrastructure costs.
"This partnership integrates Vale’s logistics capabilities with Anglo American’s operational strengths, enabling us to meet the rising demand for high-quality iron ore while supporting decarbonisation in steelmaking," said Vale CEO Eduardo Bartolomeo.
Future growth
The expanded Minas-Rio operation reflects Anglo’s broader growth strategy, combining world-class assets with technological advancements.
With the Serpentina integration, Anglo aims to cement its position in the premium iron ore market, targeting sectors driving low-carbon transitions.
Additionally, the move complements Anglo’s development of UHDMS processing technology at its Sishen mine in South Africa, which aims to triple premium-grade production volumes.
Together, these initiatives highlight Anglo’s proactive approach to meeting future demand for sustainable, high-quality raw materials.
