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 April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Venezuela Probes ex-minister accused of corruption in Ferry Deals

A former minister in President Nicolas Maduro's government denied in an interview published on Friday accusations of corruption during the purchase of three

Oil Price Shock Soon to be Positive Overall for Canada

Canada's economy will start to show more positive effects from the drop in oil prices than negatives from the second quarter onwards, Bank of Canada Governor Stephen Poloz said on Friday.

Total Eyes Sale of its Fuel Retailing Business in Turkey

Total aims to exit its fuel distribution business in Turkey and has asked Societe Generale to lead the sale, sources said on Friday, as the French oil producer

News

Venezuela Probes ex-minister accused of corruption in Ferry Deals

A former minister in President Nicolas Maduro's government denied in an interview published on Friday accusations of corruption during the purchase of three

Two Rescued from Sinking Shrimp Boat

Two fishermen were rescued from their sinking shrimp boat by a U.S. Coast Guard aircrew Friday off the coast of Saint Simons Island near Brunswic, Georgia.   Watchstanders

IMO: Making Ferries Safer

The International Maritime Organization (IMO) domestic ferry safety conference in Manila April 24 has adopted guidelines to aid the process of reducing the mounting

Barges

Ingram Barge’s Sehrt Elected AWO Chairman

The members of the American Waterways Operators (AWO), the national trade association representing the tugboat, towboat and barge industry, elected a new slate

Seattle to Host Spill Preparedness Conference

The U.S. Coast Guard and Washington Department of Ecology will host a spill preparedness conference May 20-21 at the Jackson Federal Building in Seattle.   The

Towboat Delivered to Tidewater Transportation & Terminals

Tidewater Transportation & Terminals takes delivery of new towboat Crown Point from Vigor Industrial to be deployed in Tidewater’s Columbia and Snake River service

Vessels

Venezuela Probes ex-minister accused of corruption in Ferry Deals

A former minister in President Nicolas Maduro's government denied in an interview published on Friday accusations of corruption during the purchase of three

EUROPA 2 Undergoes First Scheduled Docking

As part of its first scheduled docking, Hapag-Lloyd Cruises’ EUROPA 2 underwent technical maintenance at Blohm + Voss in Hamburg from April 11-24, 2015.   At the same time,

Boatbuilding in China

While much of the focus on coverage of the Chinese shipbuilding industry is on big shipbuilding, Maritime Reporter switches gears this month to explore activities in select boatbuilding sectors.

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | 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: 0.1245 sec (8 req/sec)