Mining Companies Exploration and Investment News

MMX mining company plans to increase iron ore production capacity in 2015. To achieve the target production capacity of mining company MMX will invest $ 1.2 billion. Iron ore production capacity is planned 33.7 million tonnes per year. Currently MMX iron ore production reached 9 million tons per year.

Planned investment for the expansion of Southeastern system, which includes 7 MTPA Serra Azul and Bom Sucesso mining project, which is still operational.

The Company also has a smaller Corumbá system, located in southwestern Brazil, which has a capacity of 2 MTPA.

Target sales market of iron ore production is produced by China, because China one of the largest iron ore importer in the world. China needs the ore to support the production of the steel industry that is always increased from year to year.

MMX President said, “The total investment will be between $ 1 (billion) and $ 1.2 billion to take MMX with the production of 33.7 million tons. We have to reach it (target) around 2014, 2015. ”

MMX Iron Ore Production Growth

MMX production this year to drop as low as 50 percent of capacity as a result of the 2008 financial crisis, but Downey says now back close to capacity.

MMX last month announced a $ 400 million agreement to sell the shares 22 percent stake in Chinese company Wuhan Iron and Steel Co (600005.SS) through a stock offering is expected to bring at least $ 200 million more than the minority shareholders.

Downey said the agreement Wuhan, together with additional capital from minority shareholders, will allow to pay the current $ 600 million of extraordinary debt.

The agreement covers 20 years of ore supply contract and an agreement to build a steel mill in Porto do ACU, a port terminal is controlled by the logistics subsidiary LLX EBX.

MMX also evaluate Greenfield projects in Chile after signing the agreement in 2008 giving the option to purchase the mineral production rights there.