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Bank assumes control of iron ore miner in Brazil

Tuesday, 02 July 2024 09:44:19 (GMT+3)   |   Sao Paulo
       

The Brazilian bank Master acquired 70 percent of the capital of Itaminas, an iron ore producer located in Sarzedo, in the Brazilian southeastern state of Minas Gerais.

The rest of the capital was acquired by the groups AGEO and AVG, with 15 percent each.

Itaminas has a yearly 6.5 million mt production capacity, currently in a process of increasing to 10 million mt per year.

The miner basically produces four ore grades: concentrated sinter feed, high-silica sinter feed, pellet feed and hematitinha, the later a small lumps ore, in the 13 to 19 mm thickness range, iron contents between 56 and 58 percent, that feeds the small blast furnaces of the independent pig iron producers in Minas Gerais and in the neighbor state of Espírito Santo.

The deal was closed on June 28, and the former owners, the brothers Bernardo and Cristiano Paz have reportedly already received the first instalment of the payment.

The sale price was not disclosed, but analysts believe that it is around the equivalent to one billion dollars.

The sale is still subject to the approval of the competition authority CADE.


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