Anglo American shares rise as it announces $4bn project writedown

<p>Shares in Anglo American are up after it announced a writedown of one of its Brazil projects.</p>

Shares in Anglo American have rallied in London this morning (January 29th), as the company has announced it is writing off $4 billion (£2.5 billion) after a review of one of its projects.

The Minas Rio iron ore project in Brazil has been subject to delays and cost overruns, which have forced the mining giant to raise its expenditure on the project to $8.8 billion.

"Despite the difficulties, we continue to be confident of the medium and long-term attractiveness and strategic positioning of Minas Rio and we remain committed to the project," chief executive Cynthia Carroll stated.

Ms Carroll – who is stepping down from the top job – suffered a fall from grace as a result of the Minas Rio project, which is seen as Anglo American's biggest failure of recent years, Reuters reports.

At 10:35 GMT, shares in Anglo American on the London Stock Exchange rose by 2.4 per cent to 1918.00p per unit.

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