Mining firm Anglo American has signed an agreement to divest its niobium and phosphates businesses in Brazil to China Molybdenum for $1.5bn.
Located in the states of Goiás and São Paulo, in Brazil, the phosphates and niobium businesses generated $146 million of EBITDA in the year ended 31 December 2015.
The phosphates business comprises Chapadao mine, Ouvidor beneficiation plant, Catalão complex, Cubatão complex as well as Coqueiros and Morro Preto deposits.
The niobium business involves Boa Vista mine, Boa Vista plant and metallurgical plant, Boa Vista Fresh Rock plant, Tailings plant, Mina I and Mina II (non operating) and Area Leste and Morro do Padre deposits.
Anglo American said that the sale of its non-core assets is a part its restructuring process announced in February
The firm intends to sell assets worth $3bn to $4bn to improve its finances and focus on core assets like diamond, platinum group metals (PGMs) and copper.
The company has decided to concentrate on competitive and long life assets to improve its cash flows and materially reduce net debt, amidst a slump in commodity prices.
Anglo American CEO Mark Cutifani said: "The proceeds from this Transaction, together with the ongoing productivity and cost improvements we are driving through the business, will enable us to continue to reduce our net debt towards our targeted level of less than $10bn at the end of 2016.
"This Transaction confirms our commitment to creating the new Anglo American, positioned to deliver robust profitability and cash flows through the price cycle."
Subject to approvals from China and CMOC shareholders, the transaction is planned to be completed in the second half of 2016.