MMX executes MoU with Trafigura, Mubadala

MMX Mineração e Metálicos and its controlling shareholder Eike Fuhrken Batista have entered into preliminary agreements with Trafigura Pte Ltd. and EAV Lux SarL, a wholly owned subsidiary of Mubadala Development Company PJSC, to negotiate exclusively with Trafigura and Mubadala for the next four weeks to execute definitive agreements, Following which they would become the controlling shareholders and operators of Sudeste Superport, the iron ore port terminal located in Rio de Janeiro, Brazil, with an initial capacity to handle 50M tons of iron ore per year.
On the closing date, Trafigura and Mubadala shall subscribe for newly issued quotas/shares in MMX Porto Sudeste for a consideration of USD 400M in cash. MMX Porto Sudeste would also assume all of the bank indebtedness of MMX Sudeste Mineração and all payment obligations relating to MMXM11 royalties. In exchange, Trafigura and Mubadala will become the holders of a 65% shareholding in MMX Porto Sudeste.
As per the potential transaction terms, MMX Porto Sudeste shall make available to MMX a port volume of 7Mtpa. In addition, MMX shall be granted an option to extend its port volumes from 7Mtpa to 13Mtpa. If Sudeste Superport is expanded, MMX shall have the right to increase its port volumes proportionally.

Previous articleNLMK Group rebrands UZPS as NLMK-Metalware
Next articleCorrotherm developing Chinese market
Stainless Steel World is part of The KCI Media Group, a group of companies focused on building and sustaining global communities in the flow control industries. We publish news on a daily basis and connect business-to-business professionals through our online communities, publications, conferences and exhibitions.