MMX Enters Talks To Sell Brazilian Iron Ore Port
News: Brazilian mining company MMX Mineração e Metálicos is reported to be discussing the sale of its Sudeste iron ore port near Rio de Janeiro in Brazil with Dutch logistics company Trafigura Beheer and Abu Dhabi investment firm Mubadala Development , Yahoo! Finance reports. The deal is expected to see Trafigura and Mubadala acquire a 65% stake in the port in exchange for BRL915.7mn (US$400mn).
BMI View: Brazil's mining sector is poised for continued, though slower, growth as weaker foreign demand weighs on Brazilian exports. The country's large untapped reserves and relatively small mining sector relative to regional peers mak e it a compelling sector growth story and should continue to attract investment. Iron ore production will continue to be the main driver of mining sector investment, but we expect growth in several base metals, as well as gold, providing opportunities for mining companies and investors. Investments into infrastructure in advance of the 2014 FIFA World Cup and 2016 Olympics will not only help support demand for raw materials, but also enable more efficient transport of mineral resources through infrastructure investments.