A group of executives from LLX and MMX led by Eike Batista is travelling to China to ink a US$400mil agreement with Wuhan Iron & Steel and MMX Mineracao e Metalicos. Wuhan is to acquire a stake in MMX, controlled by EBX, plus a 20 years iron supply agreement to Wuhan, and plus the setting up of a steel plates mill in the area of Porto Acu port at Barra Mansa (Rio de Janeiro). The steel unit is designed for 5mil mtpy per year and cost US$4bil investments from Wuhan and EBX.
MMX is to issue primary shares to be purchased by Wuhan and eventually the sum could be above US$400mil. It involves 9,09% on the holding MMX worth US$120mil and plus 23% on MMX Sudeste, worth US$280mil. MMX aims to expand the 8,7mil mtpy iron ore output of MMX Sudeste to 33,7mil mtpy until 2013. The mines AVG Minerminas part of the Serra Azul complex, should have by then an output of 16,2mil mtpy, while the Bonsucesso mine 17,5mil mtpy. Capacity expansion is to cost US$1bil and the money paid by Wuhan would be utilised for this project.
