Base Metals: business overview

Operating profit

2006

$3,897m

2007

$4,338m

EBITDA

2006

$4,255m

2007

$4,683m

  • Increased production volumes for copper in 2007
  • Further upside potential in copper through Quellaveco and Michiquillay in Peru and Pebble in Alaska
  • Barro Alto to boost attributable nickel output by an average of 36,000 tpa from 2011

Anglo Base Metals has interests in 14 operations in six countries, producing copper, nickel, zinc, niobium, phosphate fertilisers, titanium dioxide and zircon, together with associated by-products including lead, molybdenum and silver.

In Chile, its six copper operations comprise the wholly owned Los Bronces, El Soldado, Mantos Blancos and Mantoverde mines, the Chagres smelter and a 44% interest in the Collahuasi mine. The mines also produce associated by-products such as molybdenum and silver.

Other South American operations are the Loma de Níquel nickel mine in Venezuela, and the Codemin nickel and Catalão niobium mines in Brazil. Anglo Base Metals also has a controlling interest in Copebrás, a leading Brazilian producer of phosphate fertilisers and phosphoric acid. Phosphate fertilisers are used to supplement natural soil nutrients to achieve high agricultural yields.

In southern Africa, Black Mountain and Skorpion mines produce zinc and associated by-products such as lead, copper and silver. Anglo Base Metals’ sole European operation is the Lisheen zinc and lead mine in Ireland.

In January 2007, black economic empowerment company Exxaro Resources agreed to acquire Anglo Base Metals’ Namakwa mineral sands operation in South Africa, which produces titanium dioxide, zircon and rutile, together with associated by-products, along with 26% each of Black Mountain and Gamsberg, a large, moderate-grade zinc undeveloped deposit located in the Northern Cape province of South Africa. Black Mountain and Gamsberg will remain subsidiaries of, and continue to be managed and operated by, Anglo Base Metals.