Anglo seeks Dubai cash to develop Brazilian ore project

Anglo American, the mining conglomerate that is being stalked by Xstrata, its Swiss-based rival, is in talks with Dubai Natural Resources World to co-develop iron ore assets in Brazil.

The discussions with the Gulf company, owned by the Emirate of Dubai, come after separate talks with other potential investors, including Chinalco, the Chinese state-owned metals group, although these are not expected to result in a deal.

Anglo needs cash to bring its Brazilian iron ore reserves into production and an injection of capital from an outside investor might help it to fend off Xstrata’s unwelcome merger proposal. Anglo believes that it needs $3.6 billion (£2.1 billion) to develop the Brazilian iron ore. It spent $5.5 billion buying MMX-Minas Rio assets 18 months ago and a sale of part of its stake in MMX is being considered to raise the money needed to begin production.

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