Brazilian pellet producer Samarco, a 50/50 joint venture between Vale and BHP Billiton, has renegotiated a BRL 130 million ($25.3 million) debt with the Brazilian government, according to a media report by Folha de Sao Paulo.
The new debt terms extended Samarco’s debt, while also granting discounts over interests and other taxes up to the limit of 70 percent of the BRL 130 million ($25.3 million) debt, the media report said.
In return for the extended debt payment, Samarco will offer the exact same BRL 130 million ($25.3 million) in iron ore inventory as a guarantee for the debt repayment. Samarco’s total debt with the Brazilian government reportedly reaches BRL 5 billion ($974.3 million).
Samarco is currently operating at 26 percent its capacity. It expects to reach full capacity by 2030.