State-run Chinese miner acquires Brazilian iron ore mine for $1.2 billion
26 Mar 2010
State-run East China Mineral Exploration and Development Bureau (ECE), has yesterday acquired Brazilian iron ore mine Itaminas from the country's business magnate Bernardo de Mello for $1.2 billion.
Nanjing-based ECE was able to negotiate and bring down the original asking price from $2 billion to $1.2 billion including debt of $400 million.
The Itaminas mine is reported to have reserves of 1.3 billion tons and has a capacity to produce 3 million tonne per annum, but with additional investment, the output could be raised to 25 million.
The mines, located in Minas Gerais state in southeast Brazil, can be connected by an 8km railroad link to Brazil's network by pumping in more funds.
The ECE group, a mining, surveying and drilling company founded in 1955, owned by the province of Jiangsu, has overseas assets in has assets in Australia, Indonesia and Mexico.
Last year, it acquired London-listed Namibia focussed copper miner Weatherly International Plc and had tried unsuccessfully to acquire Perth-based Arafura Resources for $8 million.
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