Wuhan Iron & Steel Group of China agreed to pay US$400 million for a 21.52 percent stake in Brazil’s MMX Mineracao e Metalicos to broaden its supply of iron ore.
Wuhan Steel will be the second largest shareholder of MMX with this purchase. MMX based in Rio de Janeiro has a market value of US$2.1 billion.
Wuhan Steel with other Chinese steelmakers are investing in iron ore projects globally to reduce dependence on Vale, the Rio Tinto Group and BHP Billiton, the big three of iron ore miners.
Wuhan Steel and EBX, MMX’s holding company, also agreed to build a steel plant in Brazil.