MMX Board Approves Lease, Possible Sale of Corumba Iron Ore Mine

Posted by Michelle Howard
Thursday, July 03, 2014

Brazil's MMX said late Wednesday it approved the lease and possible sale of its Corumba, high-grade iron ore unit, part of efforts to raise cash and restructure the troubled mining company controlled by Brazilian tycoon Eike Batista.

The Rio de Janeiro-based company, formally known as MMX Mineracao e Metalicos SA, did not name the person or company that has agreed to lease the mining rights of its MMX Corumba unit in Brazil's Mato Grosso do Sul state near the Bolivian border.

The plan was approved by the MMX board, the company said in a securities filing.

MMX shares rose 0.55 percent in late-morning trading in Sao Paulo Thursday, putting the stock on track for its biggest one-day gain in nearly two weeks.

Last week, MMX officials said that a decline of more than one-third in the price of iron ore <.IO62-CNI=SI> in the last 10 months has made it harder for the company, part of Batista's troubled EBX Group mining, oil, energy, port and shipbuilding empire, to find new partners.

MMX is seeking new capital to complete its Serra Azul and Bom Sucesso mine projects in Brazil's southeastern state of Minas Gerais.

Despite Corumba's high-grade ores, including lump ore, which can be fed into a steel blast furnace with little or no processing, MMX Corumba's location far from the ocean has limited the company's ability to sell its product and raised the cost of delivering it to market.

Operations at Corumba, which produced 1.4 million tonnes of ore in 2012, were suspended last year to save cash.

The widely fluctuating water levels of the largely un-improved waterways on the Paraguay and Parana rivers have often limited MMX's transport options, which require it to ship its ore by river barge to Argentina, where is its loaded on ocean-going vessels from transport to clients.

(Reporting by Fabiola Gomes and Jeb Blount; Editing by Marguerita Choy)

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

Rotterdam Integrates Safety Research with LNG Training Facility

The Dutch company Falck Risc is becoming the number one expert on LNG safety in Europe. Together with the Unified Fire Department, Falck Risc will draw up guidelines

Antwerp Port Seeks Inputs on Setting-up LNG bunkering

By the beginning of 2016 the port of Antwerp will have an LNG bunkering and filling station for barges. The procedure for construction of the station is currently under way.

FPSO Petrojarl Knarr Delivered to Norway

Three tugs of Fairmount Marine have towed the brand new FPSO Petrojarl Knarr from South Korea to Norway in just 61 days. Petrojarl Knarr, one of world’s largest

Finance

Nigerian Minister Pledges $1.3 bln for Power Companies

Nigeria's oil minister announced a 213 billion naira (1.3 billion US dollar) bail-out package for power companies on Saturday, nearly a year after the sector was privatised.

Russia's Yamal LNG Project May Tap Wealth Fund in 2014

Russia's Novatek may get funds from the National Wealth Fund for its Yamal LNG project before the year-end, a minister said, as part of government plans to support sanction-hit companies.

ICC Conference Focuses on Platform to Settle Disputes

The 5th ICC International Commercial Mediation Conference has brought together leading mediators, arbitrators, corporate managers and in-house counsel from around

News

Greek Ferry with Bulgarians On Board Sinks near Corfu

A Greek ferryboat with Bulgarian passengers on board has suffered an accident near the island of Corfu. The ferry was traveling from Italy’s Ancona to Patras

Japan's Minister Says Energy Policy Without Nuclear Difficult

Japan would find it difficult to formulate an energy policy without nuclear power given its lack of energy resources and the high cost of utilities for companies and households,

Nigerian Oil Workers Call Off Strike After Talks with Government

Nigerian oil workers' unions have called off a four-day strike after reaching a deal with the government in a dispute over pensions, they said on Saturday. A

Barges

Lilaas Engages Imtra for N. American Distribution

Strong prospects in the North American marine equipment market have triggered a new importation and distribution agreement between control specialist Lilaas

Vessel Discharge Legislation Awaits Congressional Nod

The American Waterways Operators, a 350-member trade association representing the U.S. tugboat, towboat and barge industry, hailed the House introduction of

Dann Marine Repowers With Cummins Tier 3 Engines

Dann Marine Towing, LC., is a fifth generation family owned and operated tugboat company based in Chesapeake City, MD. The model-bow twin-screw tug Sea Coast was

Vessels

Deep Sea Supply takes Delivery of 'Sea Triumph'

The Deep Sea Supply  took delivery of the newbuilding Platform Supply Vessel 'Sea Triumph'  on Thursday 18 September.  The vessels 'Sea Triumph' is a STX 05-L

Lilaas Engages Imtra for N. American Distribution

Strong prospects in the North American marine equipment market have triggered a new importation and distribution agreement between control specialist Lilaas

Vessel Discharge Legislation Awaits Congressional Nod

The American Waterways Operators, a 350-member trade association representing the U.S. tugboat, towboat and barge industry, hailed the House introduction of

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Port Authority Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1795 sec (6 req/sec)