MMX Plans $3bn Expansion in Brazilian Mines

16 December 2010 (Last Updated December 16th, 2010 18:30)

Brazilian iron-ore mining firm MMX Mineracao & Metalicos SA is planning to invest BRL$5bn ($3bn) to expand mines in Brazil to meet the growing demand for raw materials in Asia. The firm is expected to invest around $2bn at the Serra Azul mine and up to $1bn at Bom Sucesso projects, w

Brazilian iron-ore mining firm MMX Mineracao & Metalicos SA is planning to invest BRL$5bn ($3bn) to expand mines in Brazil to meet the growing demand for raw materials in Asia.

The firm is expected to invest around $2bn at the Serra Azul mine and up to $1bn at Bom Sucesso projects, which are located in the state of Minas Gerais, according to Bloomberg.

MMX CEO Roger Downey said the planned increase in iron production will significantly reduce costs per ton at Serra Azul, and will meet supply contracts with Chinese and South Korean partners.

The Serra Azul project includes a plant that processes 24 million tons of ore a year, while Bom Sucesso project processes ten million tons of ore a year.