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Glencore buys stake in Brazilian iron ore firm Ferrous Resources

Keywords: Tags  Glencore, Ferrous Resources, Brazil, iron ore offtake

SÃO PAULO — 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 trader’s 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 Brazil’s 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 First.

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