Kazakhstan-based mining group Eurasian Natural Resources Corporation Plc. (ENRC) has announced that it is continuing to expand its iron ore resource base in Brazil through the acquisition of 100 percent of Mineracao Minas Bahia SA (MIBA) and 51 percent of Mineracao Peixe Bravo SA (MPB), following the recent consolidation of its position in Bahia Minerals BV.
Accordingly, agreement has been reached on the acquisition of the abovementioned iron ore assets in Brazil, for a total cash consideration of $304 million, from various entities including the Couri family and Steel do Brasil Participacoes SA. The transaction is expected to close on October 20, 2010.
In addition, ENRC also holds a three-year option to purchase the remaining 49 percent of MPB from its shareholders for $50 million.
MIBA owns the mineral rights to the Jibóia Project, an iron ore project located 600 kilometers north of Belo Horizonte in the Minas Gerais state in Brazil, which has an iron ore resource base of 2.865 billion mt with an average iron content of 25.9 percent.