Reuters quoted several industry sources said global miner Anglo American is considering selling its majority stake in the Amapa iron ore operation in northern Brazil as it focuses on its flagship Minas-Rio growth project further south.

Anglo bought control of the Amapa iron ore operation which produces both pellet and sinter feed, in 2008 as part of the USD 5.5 billion Minas-Rio acquisitions from Brazilian billionaire Eike Batista MMX.

According to one of the industry sources with direct knowledge of the matter an internal valuation has put the Amapa operation value at up to USD 1.5 billion meaning Anglo 70% holding would be worth at least USD 1 billion.

A second industry source said "It is a small mine, it is not the best asset in the world. It is in the Amazon and the logistics are difficult. They would rather focus on Minas-Rio."

Another source familiar with the situation said the mine was not scaleable and pointed to restrictions on Capesize vessels in the Amazon port serving Amapa, limiting the amount of ore that can be shipped at any one time and increasing freight costs.

Anglo American declined to comment on Monday.

(Sourced from Reuters)