Japanese company Itochu has signed an agreement with Brazilian steel company Companhia Siderúrgica Nacional (CSN) to acquire 10.74% of CSN Mineração (CM) for around 4.42bn reais ($769m).
This transaction marks an additional investment for Itochu, which has held an indirect 7.15% stake in the iron ore producer since 2008.
CSN Mineração is reputed to be the second-largest iron ore exporter in Brazil and among the five most competitive in the transoceanic market. The company sold 43mt of iron ore in FY2023.
The high-grade iron ore supplied by the company is crucial for the production of ferrous raw material for ‘green’ ironmaking with low carbon emissions.
CM was consolidated in 2015 from the merger of the mining assets of CSN and Namisa. This company is divided between CSN (87.52%) and a consortium composed of large Asian steel companies (12.48%). CM reported better operating results in 2020, concluding its initial public offering on B3 on 18 February.
The existing shareholding structure of CMIN is composed of CSN (79.14%), a consortium of Asian companies (11.30%) and other shareholders (9.55%).
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By GlobalData
With the new investment, Itochu aims to strengthen its partnership with CM and actively participate in enhancing and expanding the company’s production infrastructure.
The Casa de Pedra Mine, operated by CM, is noted for its capacity to produce high-grade iron ore at low costs and large volumes, further aiding the steel industry’s transition to lower carbon emissions.
Itochu has disclosed its collaboration with EMSTEEL, based in Abu Dhabi, to advance the supply chain for ferrous raw material for ‘green’ ironmaking with low carbon emissions.
The partnership will see the production of this material in the United Arab Emirates using high-grade iron ore from the Casa de Pedra Mine.
This ferrous raw material will be used in the manufacture of green steel, which is characterised by reduced carbon emissions, in Japan and other markets.
