London-based mining giant Anglo American Plc (AAUK) plans to open talks with China's state-owned aluminum producer, Aluminum Corporation of China Limited (ACH), or Chinalco, and at least one unidentified Middle Eastern investor about a partnership to inject hundreds of millions of dollars into the company's Brazilian iron-ore business MMX, media reported Sunday.
The negotiations are reportedly at an early stage and there is no certainty that a deal will be reached.
As per a report, Anglo American is in talks with Dubai Natural Resources World, a unit of Dubai-government owned Dubai World, to develop the iron ore sources in Brazil. Anglo reportedly believes it needs $3.6 billion to develop the Brazilian iron ore.
According to the Financial Times, Anglo American had held informal talks with Gulf Industrial Investment Co., a Bahrain iron oxide pellet producer, and Japanese trading house Sojitz about taking a stake of up to 30% in MMX.
Anglo American has also reignited its plans to appoint Sir John Parker as chairman, replacing outgoing board chief Mark Moody-Stuart, reports said. According to Sunday Times, Jim Leng, who recently stepped down as chairman of Rio Tinto, had been put forward as a potential candidate to succeed Moody-Stuart.
Moody-Stuart, who served as Anglo American's chairman since 2002, has announced his intention to step down.
Last week, Anglo American rebuffed a GBP 41 billion proposal from Xstrata plc (XTA.L) to consider a merger of equals.
AAUK closed Friday's trading at $14.85, down $0.36, on a volume of 2.54 million shares.
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