Wuhan buys Brazil stake

09:58, December 01, 2009      

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Hubei-based Wuhan Iron & Steel Group, China's third-biggest steelmaker, agreed to pay $400 million for minority equity of Brazil's mining company, MMX under the EBX Group, to broaden its supply of iron ore after more than a year's negotiation.

Wuhan Steel, with an annual capacity of 30 million tons, will become the second-biggest shareholder by having 32.09 percent equity in MMX, according to a previous statement posted on MMX's website. Wuhan Steel will also appoint two board members and three technology experts to MMX to participate in the Brazilian miner's technology and operation management, reported China News, Monday.

Wuhan Iron and MMX also signed an agreement Monday to build a steel plant in Brazil, spokesman Bai Fang told Bloomberg in a phone interview without providing details.

This month, the company won Australian approval for a A$271 million ($249 million) investment in Centrex Metals. It also signed a long-term contract in November to buy iron ore from Venezuela's Venezolana de Guayana, the country's only iron ore producer.

Source: Global Times/Xinhua
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