LONDON Brazilian tycoon Eike Batistas MMX Mineracao & Metalicos SA has sold a controlling 65-percent stake in the Sudeste Superport in Brazils Rio de Janeiro state to Dutch trading giant Trafigura Beheer BV and Abu Dhabi investment firm Mubadala Development Co. PJSC.
The $400-million sale of the Sudeste iron ore port, just over 31 miles from Rio de Janeiro, is expected to be completed by year-end, the companies said Oct. 14.
MMX signed a sales agreement in September with Mubadala and Trafigura warehousing subsidiary Impala. The transaction will see Trafigura and Mubadala take on debt of 5.67 billion reais ($2.49 billion) in return for the stake.
The completion of the sale is subject to regulatory approval and the execution of agreements relating to debt held by Batistas MMX mining group, Trafigura said in a statement on its website.
Under the terms of the agreement, all of MMXs 3.2 billion reais ($1.4 billion) in debt will be transferred to the port.
The Sudeste terminal is designed to handle capesize vessels and has an initial capacity to handle 50 million tonnes of iron ore per year, with development plans to double its capacity.
Construction work on the port began in July 2010, with commercial operations expected to begin in mid-2014.
Brazils MMX in June said it was evaluating business opportunities, including the possible sale of shares and assets. This also had reportedly included talks over the sale of the iron ore Superport (amm.com, June 25).
A version of this article was first published in AMM sister publication Steel First.