Anglo American said on Tuesday it would take a $4 billion writedown on its Minas-Rio iron ore project in Brazil after having to increase its spending on the project.
"Following its November 2012 guidance and the completion of the review, capital expenditure for the Minas-Rio project is projected to increase to $8.8 billion," the company said in a statement.
Continue Reading Below
"On the basis of the revised capital expenditure requirements and its assessment of the full potential of phase one of the project...Anglo American will record an impairment charge of $4.0 billion at 31 December 2012 on a post-tax basis," it said.
(Reporting by Brenda Goh, Editing by David Goodman)