WISCO to invest U.S.$400mln to Brazil mines

June 24 MetalBiz-The investment rust of Chinese enterprises in mines does not concentrate on Australia any longer. On June 22, Brazil iron ore manufacturer MMX released a report that it had received a non-bonding purchase term from WISCO. WISCO intentionally purchase few stakes of MMX and its subsidiary MMXSudeste with U.S.$400mln.

WISCO will obtain 9.09% of its shares by purchasing ordinary stocks issued by MMX with U.S.$120mln and get 23% shares of MMXSudeste with U.S.$280mln in the same way. MMX emphasized that this term is non-binding, so either party can withdraw or stop the transaction before concluding bonding contract.

WISCO and MMX signed a memorandum of understanding on May 19, involving WISCO intend to invest in MMX and to set up a steel mill with 5mln tons production capacity in Brazil. The insiders of WISCO confirmed that the steel mill to be set up by WISCO is in Rio de Janeiro and it will be operated by WISCO. According to Brazil report of economy and value, the investment in this steel mill reached U.S.$4bln.

WISCO significantly speed up its pace to find mines overseas this year. Since this year, WISCO became shareholders of the mining companies in Canada and Australia respectively, additionally, it has got the right of mining in Madagascar.