Mubadala Investment Company and commodities trader Trafigura are exploring the sale of their assets in Brazil’s iron-ore sector, specifically Porto Sudeste, a key iron ore port in Rio de Janeiro, and the Mineração Morro do Ipê mining project in Minas Gerais. Both entities are working with UBS BB and Goldman Sachs to facilitate the sale, a move that could be completed within the next six to nine months.
The duo’s involvement with these assets dates back to early 2014 when they jointly acquired Porto Sudeste, a facility designed to handle up to 50 million tons of iron ore per year. Located in a strategic area for bulk shipments, the port’s capacity is critical for global iron ore exportation. In 2023, Porto Sudeste shipped approximately 26 million tons of iron ore, marking a significant increase from the previous year.
The associated mining project, Mineração Morro do Ipê, includes two iron ore mines, Ipê and Tico-Tico. Ipê alone produces around 3.5 million metric tons of iron ore annually, while Tico-Tico was licensed for development less than a year ago. As part of the expansion strategy, the owners have invested over $230 million into the project, with the aim to boost production to nearly 9 million tons per year.
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