UK-based iron ore producer Zamin is looking to export iron ore at its Brazilian subsidiary Zamin Amapa as a way to pay debts.
The company, which halted output in 2013 following the collapse of a port it used to export the commodity, has approximately BRL 1.5 billion ($470 million) in debt.
In a meeting this week with prosecutors, Amapa state representatives, and union leaders, Zamin said it could export iron ore with existing inventory, considering the commodity’s prices now seem more attractive to investors.
Zamin Amapa has suffered a number of setbacks: in December last year, it was prevented from selling iron ore in Brazil by an Amapa state environmental regulator, Imap, because the company didn’t have a license. Despite having halted its operations, Zamin had at the time iron ore inventory that it couldn’t use.
Currently under bankruptcy protection, Zamin Amapa claims to have some 45,000 mt of iron ore, which is “ready” to be sold to investors.
The money coming from the potential sale of the product would go to a court, which could use it to pay workers, banks, and creditors who didn’t have guarantees to receive money from the company.
Zamin Amapa was previously owned by Brazilian iron ore producer MMX and then by Anglo American, which sold the company to Zamin.