Mubadala Capital is reportedly preparing for the divestment of Porto Sudeste, a significant iron ore port in Brazil that it co-owns with commodities trader Trafigura, Reuters reported via mining.com.
The potential sale includes the port in Rio de Janeiro and a joint iron ore mining project, Mineracao Morro do Ipe, in the state of Minas Gerais.
This joint venture, established in 2016, encompasses two mines and their respective processing units.
The Ipe mine currently produces approximately 3.5mtpa of iron ore, while the Tico-Tico mine received its operating licence less than a year ago.
To increase total production to around 9mtpa, the owners are investing 1.3bn reais ($230m).
Porto Sudeste has the capacity to manage up to 50 million tonnes (mt) of iron ore each year.
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By GlobalData
In 2023, the port reported shipping approximately 26.1mt, a notable increase from 17.4mt the previous year.
The port’s oil trans-shipment activity also rose, with nine operations in the past year compared with five in 2022.
The strategic acquisition of Porto Sudeste by the Abu Dhabi state investor and Trafigura was finalised in early 2014, marking a significant venture in the iron ore sector.
Mubadala Capital Brazil executive director Leonardo Yamamoto said Porto Sudeste is now a “mature” asset. He added: “our role in this specific asset, in this specific story, is no longer very relevant.
“We will offer the market the option of selling the mine as well, because for investors it makes a lot of sense to have an integrated player,” Yamamoto said on the sidelines of an event in Sao Paulo.
