rio sale

I this old news but it is encouraging to see a mine that has similar capacity to Frances Creek, albeit a far greater proven resource, fetching USD 750 million.


Vale to acquire Corumba iron ore assets from Rio Tinto
Companhia Vale do Rio Doce announced that it entered into a purchase and sale agreement with Rio Tinto Plc to acquire iron ore and potash assets through an all-cash transaction. The price to be paid for the iron assets amounts USD 750 million, while the potash deposits will be acquired for USD 850 million, totaling USD 1.6 billion.

100% of the Corumbá open pit iron ore mining operations state of Mato Grosso do Sul, Brazil, with associated logistics assets, including port and barges.

Corumbá produced 2.0 million tonnes of iron ore in 2008 and has a nominal capacity to produce 2.5 million tonnes per year, with proven and probable reserves at the end of 2007 of 210 million tonnes at 67.0% Fe content¹, and mineral resources of 583 million tonnes at 62.7% Fe content. It is a world-class asset, with high Fe content and rich in direct reduction lump ores, a highly valued type of iron ore that is becoming increasingly scarce around the world.

The logistics assets enable Corumbá to be 70% self-sufficient in the transportation of iron ore down the Paraguay River. The logistics arm is strategic in a region where there is strong seasonal volatility in freight availability and prices.

Corumbá is located near our Urucum iron ore and manganese operations. There are potential synergies to be exploited, through augmented asset and portfolio flexibility, lower administrative and logistics costs and rationalization of the use of reserves. The acquisition of Corumbá is subject to the approval of certain government entities in Brazil.