UPDATE 1-Anglo's revamp cushions profit loss, Brazil iron project is on track

(adds details on Minas Rio, details)

LONDON, Feb 14 (Reuters) - Global miner Anglo American

AAL.L said on Friday its large Minas Rio project was on track to deliver iron ore by the end of the year, as it posted a forecast-beating increase in 2013 operating profit.

Anglo registered a 6 percent rise in underlying operating profit to $6.6 billion, ahead of analyst forecasts. Thomson Reuters I/B/E/S had forecast $5.6 billion, compared to the company-provided consensus of $6.3 billion.

After the impact of impairments though, the loss attributable to equity shareholders was $961 million, compared with a $1.5 billion loss in 2012.

The $1.9 billion impairment was principally in relation to the Barro Alto nickel facility in Brazil and to a review of the platinum portfolio.

Anglo, the smallest of the major diversified miners, has embarked on an overhaul plan under chief executive Mark Cutifani, after years of sector-lagging returns. News Search ID:nL6N0JR2EZ

The producer said its large Minas Rio iron ore project in Brazil, which had disappointed investors with multi-billion cost overruns and delays, was on track to deliver its first iron ore shipment by the end of 2014 and the project's planned overall spending cost was unchanged from its latest estimate at $8.8 billion.

Anglo American's iron ore division Kumba KIOJ.J , by far the largest contributor to Anglo's profits, posted earlier this week a 24 percent jump in underlying full-year earnings, recovering from a wave of illegal strikes which hit South Africa's mining sector in 2012. News Search ID:nL5N0LG1CP

Industrial action, particularly in platinum, remains a serious concern for Anglo though.

Its platinum division Amplats AMSJ.J swung back to full-profit in 2013 but its recovery is threatened by fresh labour unrest across South Africa's platinum belt.

(Reporting by Silvia Antonioli; editing by William Hardy)

((silvia.antonioli@thomsonreuters.com)(+44)(0)(20 7542 1755)(Reuters Messaging: silvia.antonioli.reuters.com@reuters.net))

Keywords: ANGLOAMERICA/ EARNINGS