By Gillian Tan
SYDNEY--Global miner Anglo American PLC (AAL.LN) is set to
announce a tie-up with Australia-listed gold explorer Beadell
Resources Ltd. (BDR.AU), two people familiar with the matter
said.
The announcement is expected to see Anglo enter both an off-take
and joint-operating agreement, both related to Beadell's Brazilian
Tucano project. Tucano is adjacent to Anglo American subsidiary
Anglo Ferrous Amapa Mineracao's iron-ore mining concession.
In a presentation at the Diggers and Dealers Forum in Kalgoorlie
earlier this week, Beadell said off-take negotiations for iron-ore
concentrate from gold plant waste were well advanced.
"Assuming the agreement is executed, net income at current
iron-ore prices is expected to reduce gold cash operating costs by
up to US$170 per ounce, dependent on global iron-ore prices,"
Beadell said, estimating annual production of 500,000 tons of iron
concentrate with a grade of around 65%.
In the same presentation, the Perth-headquartered company said
it was in advanced negotiations regarding a joint-operating
agreement which would lower cash costs.
"Assuming it is executed, iron ore mined in the gold pits will
be cost reimbursed and are expected to reduce gold cash costs by
between US$20 and 30 and ounce dependent on annual tons mined,"
Beadell said.
Beadell shares have risen about 18% to 73 Australian cents a
share this week, giving the company a market value of A$525 million
Australian dollars.
A spokeswoman for Anglo American was immediately unavailable for
comment.
Write to Gillian Tan at gillian.tan@wsj.com