Ferrous Resources Limited intends to form a strategic partnership with an investor by late April or early May of 2011 to support the development of a USD 4.2 billion iron ore project in Brazil. Talks are currently underway with five interested partners, which may include traders, mining companies or steel producers from Asia and Brazil. Ferrous is controlled by US, European, Australian and Brazilian pension funds and hedge funds. Harbinger Capital Partners is its largest shareholder with a 26% stake in the company. Initial production is currently underway as part of the company’s first phase project that predicts exports of 25 million tns per year from 2014. Initial output from the Viga mine in Brazil will reach 2.5 million tns in 2011; at least 750,000tns is already scheduled for export from Vale SA’s Sepetiba port terminal in Rio de Janeiro, to leverage cash flow. Output will increase to 4 million tns in 2012 and 6 million tns in 2013. The company also has an option to sell 3 million tns to the domestic market until its export channels are established. Ferrous’s project also includes plans to construct a 1.3 million tns/yr long steel products plant in Juiz de Fora, Minas Gerais. The mill will be built in conjunction with a Brazilian steel company.