A good day for Anglo shareholders, but stormy seas for Minas Rio on the horizon

IRJ July 30 - It’s been a two-year break for Anglo American shareholder dividends payouts, but today marks the end of the dry spell. The Interim results for the first half of the year delivered much better figures than expected, and as such Anglo has reinstated interim payment of 25 cents a share.

In addition to this news, the company also warned that its Minas Rio iron ore project, in Brazil, does not look likely to commence production in 2012 as originally slated, and as a result Anglo will probably incur further capital costs in the future.

“A number of key approvals remain outstanding and these are on the critical path of the project, therefore impacting the time and cost to complete,” Anglo’s news release states.

“Once the remaining initial approvals are granted, we believe it will take 27 to 30 months to construct and commission the mine and plant and to deliver the first ore on ship.”