In march last year they brought 2 mines for 5.5 billion
A BRM & UMC marrage would suit them well IMO...
The Minas-Rio iron ore project is located in the Minas Gerais state in Brazil. It will comprise a mine and beneficiation plant producing high-grade pellet feed. The pellet feed will be transported through a slurry pipeline to the Port of Açu which is being constructed in Rio de Janeiro State, with the potential for further pipelines and rail access. The project is due to begin production in H1 2010 with potential production of 26.5 million tonnes per annum from the first pipeline. MMX currently owns 51% of the Minas-Rio project and Anglo American acquired a 49% stake in the project in May 2007, including a 49% stake in LLX Minas-Rio, the owner of the Port of Açu.
The Amapá iron ore project is located in the Amapá state in Northern Brazil. Construction of the Amapá project was completed recently, with initial production in December 2007 and with annual capacity of 6.5 million tons per annum of iron ore. MMX currently owns 70% of the Amapá project and Cleveland Cliffs Inc. owns 30%.
Anglo American buys Brazilian iron ore projects for 5.5 billion dollars AFP Mon, 31 Mar 2008 04:47 PM
Global mining giant Anglo American on Monday agreed to buy Brazilian iron ore interests for 5.5 billion dollars amid strong demand for steel, particularly from China, and record-high commodity prices.
Anglo American said in a statement that it would take control of the Minas-Rio and Amapa iron ore projects, currently owned by MMX Mineracao e Metalicos SA (MMX) of Brazil, for the equivalent of 3.5 billion euros.
Iron ore is used to make steel, a metal helping to feed construction in emerging economic powers such as China and India.
The Minas-Rio project is under development and is set begin production in the first half of 2010, turning out 26.5 million tonnes of iron ore per year.
The Amapa project became operational in December and has capacity of 6.5 million tonnes.
Anglo American has agreed to buy the mines from MMX by purchasing 63.5 percent of a new company, IronX, which will then be de-merged from MMX.
"Anglo American plc is pleased to announce that ... it has signed an agreement with the controlling shareholder of MMX Mineracao e Metalicos, Mr Eike Batista ... and certain other MMX shareholders to acquire a 63.5 percent shareholding in a new company IronX which will be de-merged from MMX," a statement read.
The global supply of iron ore is dominated by three mining companies, with Brazil's Vale sharing the market with BHP Billiton and Rio Tinto, the world's second and third-largest iron producers.
BHP Billiton is currently in the midst of a hostile takeover bid for Rio Tinto, while ArcelorMittal is the world's biggest steel producer.
Vale last week said negotiations to acquire its smaller Anglo-Swiss rival Xstrata had ended unsuccessfully. A deal would have created the world biggest mining group, overtaking BHP Billiton.
As demand for iron ore surges, so too have prices. European steelmakers last month criticised recent moves by producers to hike iron ore prices by a massive 65 percent.
UMC Price at posting:
76.0¢ Sentiment: Hold Disclosure: Held
