The businesses are located in Brazil, with the Phosphates business comprising a mine, plant, two chemical complexes and two deposits, and the Niobium division made up of three mines (one operating), three processing facilities, two deposits, and sales and marketing divisions in the UK and Singapore.

The divisions generated earnings before interest, tax, depreciation and amortisation of $146 million in 2015, and a pre-tax profit of $69 million.

CMOC owns a molybdenum-tungsten mine in China, as well as the Northparkes copper mine in New South Wales. The company said the acquisition provided geographic and product diversification.

“The sale of our Niobium and Phosphates businesses is another positive step forward in the strategic reshaping of Anglo American that we set out in February,” Anglo CEO Mark Cutifani said.

“The proceeds from this transaction, together with the ongoing productivity and cost improvements we are driving through the business, will enable us to continue to reduce our net debt towards our targeted level of less than $10 billion at the end of 2016.

“This transaction confirms our commitment to creating the new Anglo American, positioned to deliver robust profitability and cash flows through the price cycle.”

Cutifani said last week that the sales processes for its Nickel business, the Australian coal assets and its South African domestic thermal coal assets was advanced.

Other non-core assets are also being prepared for sale.

Anglo is targeting divestments of $3-4 billion this year alone, having already sold some smaller Australian coal assets.

The company plans to go from 45 assets in 2014 (it had 60-70 when Cutifani joined in 2013), to just 16 assets.

The “new” Anglo will focus on De Beers (diamonds), platinum group metals and copper, with nearly everything else to be offloaded or run for cash.

 

The sales will reduce Anglo’s headcount from 128,000 people down to around 50,000.