International commodities trader and miner Glencore
International Plc has acquired a stake in Ferrous Resources do
Brasil, the Brazilian iron ore producer said.
Switzerland-based Glencore has
purchased shares from minority shareholders, but the overall
size of the traders stake was not disclosed, the company
confirmed to AMM sister publication Steel
First on Feb. 27.
Glencore agreed Feb. 26 to also
buy 20 million tonnes of iron ore from Ferrous Resources over
the next four years. The offtake deal is part of Ferrous
Resources plans to produce 15 million tonnes per year of
iron ore at its Viga mine from 2016 onward, chief executive
officer Jayme Nicolato Correa said.
Ferrous Resources plans to reach
combined output levels in 2016 of 17 million tonnes per year of
iron ore from the Viga, Esperança and Santanense mines,
all in Brazils southeastern Minas Gerais state.
Ferrous Resources expects to
produce 5 million tonnes of iron ore in 2013, up from 3.2
million tonnes last year.
Glencore declined to comment.
A version of this article
was first published by AMM sister publication Steel