Tuesday, August 25, 2009

Namisa Expects Iron Ore Production To Top 39mn Tonnes By 2013

Namisa, the iron ore mine controlled by Brazilian steelmaker CSN, will invest up to 4 billion reais ($2.2 billion) to help increase production to 39 million tonnes by 2013, its chief executive told Valor Economico newspaper.

Charles Putz, 48, the American-Brazilian executive in command of the mining company, said production at its Fernandinho and Engenho mines, close to the Casa de Pedra iron-ore complex, will reach 9 million tonnes this year, Valor said on Monday.

Net revenue should reach 1.5 billion reais, or 40 percent more than last year, when the mine sold 9.5 million tonnes of the metal. Putz said Namisa's focus is to place its iron-ore primarily in Europe and Asia, according to Valor.

The investment plan will also help supply Namisa with ore from Casa de Pedra starting on 2012, the newspaper said. The company will build a facility next to Casa de Pedra to refine the ore extracted from the mine, Putz told Valor, adding the plant should be ready by the end of 2012

By the end of 2013, Namisa's production will be comprised of 13 million tonnes from its own mines, 20 million tonnes from Casa de Pedra and the remaining 6 million tonnes from neighboring miners, Putz told Valor.

Part of the investments will be funded with loans from the Brazilian state development bank, known as BNDES, and the JBIC, the Japanese development lender, Valor said.

CSN owns 60 percent of Namisa. Japanese trading company Itochu and six Japanese steelmakers bought at 40 percent stake in the miner for $3.08 billion last December.

Source: Reuters

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