Trafigura is interested in acquiring assets in the Brazilian iron ore supply chain, media reports said on Thursday, adding that the trading company is in no hurry to make such move.
The company wants to have a stronger presence in the Brazilian iron ore market, which mean it could look at mines, warehouses, transportation and trade of the product.
Trafigura has found several obstacles at its JV Sudeste port, which needs licenses to operate. Media reports say these licenses are taking longer than expected. Last year, as reported by SteelOrbis, Usiminas said the Sudeste port was expected to be completed by the end of 2014 or the beginning of 2015. Usiminas plans to expand its iron ore capacity from 8 to 12 million mt. However, to reach that capacity, the company would need to load at the Sudeste port the exceeding volumes of the product.
Trafigura said it expects the port to be fully operational this year, but declined to give a date.
Last year, Brazil’s water transport authority Antaq authorized the start-up of operations of the Sudeste Port, according to information made available in the Diario Oficial, the country’s official gazette. According to the document, the port would operate partially.
The port is owned by MMX, Mubadala and Trafigura. MMX has a 35 percent stake in the project, while Mubadala and Trafigura own the other 65 percent.