Dow Jones has reported that the Brazilian mining exploration company, GME4, will start a global roadshow in the next few days to sell the majority stake in an 800 million tonne iron ore mine in northeast Brazil.
The iron ore deposits, valued at USD 2.4 billion and located in the south of Piaui State, will be presented to potential buyers in Shanghai.
Mr Joao Carlos Cavalcanti one of GME4's partners said that "Our aim is to sell around 80% of the mine."
Mr Cavalcanti estimated production costs at USD 21 to USD 23 per tonne and annual output at 20 million tonnes a year of pellet feed.
Mr Cavalcanti said that he has already signed an energy supply contract for the mine from the Sobradinha dam, the largest in northeast Brazil.
GME4 already has had one successful iron ore deposit sale to date. Three years ago, it sold Indian investor in neighboring Bahia State for USD 360 million.
Piaui and Bahia States aren't traditional iron ore mining regions. The Piaui deposits are within 20 kilometres of the route of the Transnordestina railroad, which is expected to be operational in 2011. The railroad will connect two relatively new deepwater ports: Suape near Recife and Pecem, near Fortaleza.
According to Brazil's Mineral Production Department, other mining companies have also applied to prospect in Piaui, including Companhia Vale do Rio Doce, BHP Billiton Limited, MMX Mineracao e Metalicos SA and Bahia Mineracao.
Source: Dow Jones/Steel Guru
No comments:
Post a Comment