Anglo American to Back Out of Michiquillay Copper Project in Peru

Monday December 8, 2014, 2:12pm PST

Anglo American (LSE:AAL) will withdraw from the Michiquillay copper project in Peru, via termination of a 2007 privatisation agreement.

As quoted in the press release:

"Under the terms of the 2007 privatisation agreement, Anglo American Michiquillay S.A. has begun the appropriate legal processes to return the project to Activos Mineros S.A.C.

In the current economic environment, in which Anglo American is bringing increased focus to its portfolio and prioritising its capital to drive greater returns, Anglo American believes that the prospects for the development of the Michiquillay project would be improved under different ownership.

Duncan Wanblad, CEO of Anglo American's Base Metals and Minerals business, said:

"While Michiquillay represents an attractive copper deposit, we have made the decision to withdraw following a comprehensive evaluation of the potential of our long-dated project options. We have reduced the capital required to sustain projects during the pre-approval phases of their development as we focus the portfolio and prioritise our capital on the projects and assets that offer the greatest source of potential value to us, over the short and long term.

Click here to read the Anglo American (LSE:AAL) press release