Chinese group buys iron ore assets in Brazil

25 March 2010

Sao Paulo, Brazil, 25 March – Chinese group East china Exploration and Development Bureau (ECE) Wednesday in Sao Paulo signed a statement of intentions for the acquisition of the iron ore assets of Brazilian group Itaminas Comércio de Minérios for US$1.2 billion.

According to Wilson Brumer, chairman of Winbros, a company hired to organise the sale and attract potential buyers, the sale of these Itaminas group iron ore assets aims to garner cash to pay debts of some US$400 million as well as from renting land.

Brumer, cited by the Brazilian press, said that negotiations between the two groups had been underway for around six months.

The Itaminas group, which has been in business for the last 52 years, produces 3 million tonnes of iron ore per year and has a mine with estimated reserves of 1.3 billion tons.

The mining company’s assets are located in the municipal area of Sarzedo in the Belo Horizonte metropolitan area.

The ECE group, with headquarters in Nanjing, the capital of China’s Jiangsu province, was founded in 1955 and brings together mining, surveying and drilling company ies as well as research centres and geological exploration teams, acting in countries such as Indonesia, Kampuchea, Mexico, Australia, Iran and Namibia. (macauhub)