Thursday, 30 Jun 2011
Japan's JFE Steel Corp and Itochu Corp plan to buy out the stakes held by Nippon Steel Corp and Sumitomo Metal Industries Ltd in the operator of the Namisa mine in Brazil, in a bid to secure a steady supply of iron ore.
Itochu which has been hunting new revenues in mining rights said that it would spend JPY 40.9 billion (USD 504 million) to boost its stake to 22.45% from 16%.
JFE Steel said that a JFE Holdings Inc unit will invest about JPY 13.7 billion to raise its interest to 8.64% from 6.48%.
Currently, 60% of the Namisa mine is owned by Brazilian steelmaker Companhia Siderurgica Nacional, with the rest held by a consortium of Japanese companies and South Korea's POSCO.
Nippon Steel and Sumitomo Metal are selling their stakes amid an ongoing review of portfolio performance and asset use. The transfer will take place on June 30.
(sourced from Reuters)
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