Sumitomo to purchase 30% stake in Usiminas
Japanese Sumitomo Corp said that it will spend US$1.93 billion to buy a 30 percent stake in an iron ore mine from Brazilian steelmaker Usiminas.
This move will help Sumitomo’s to access iron ore by 10 times to 10 million a year. Sumitomo will set up a joint venture with Usiminas which will take 70 percent of stake.
The mine has reserves of an estimated 2.4 billion tons and its output will be last for 30~ 40 years. Currently the expected annual output is 7 million tons and will rise up to 30 million tons in years.
News Date 01 Jul 2010 14:40:08 reported by Judy Lin