Wuhan Iron and Steel Company (Wisco), China's third biggest steel maker, yesterday agreed to pay $400m for 21.5 per cent of MMX, a Brazilian iron ore miner, in what Eike Batista, controller of MMX's holding company, described as a “historic transaction” that would “open a new highway between Brazil and China”.
Wisco agreed to purchase at least 50 per cent of iron ore to be produced at mines which MMX bought in 2007 and 2008 in Minas Gerais state, south-eastern Brazil. MMX said the mines, of which some have entered production and others are under development, were expected to reach capacity of 33.7m tonnes a year from 2013.
Wisco signed a separate co-operation agreement with EBX, MMX's controller, under which they will begin preparing a potential joint venture to build a steel mill at the Açu Super Port industrial district in Rio de Janeiro state, controlled by LLX, a transport and logistics company in the EBX group.