Chinese consortium China Niobium Investment Holdings has acquired a 15% stake in Brazilian firm Companhia Brasileira de Metalurgia e Mineração (CBMM) for $1.95bn.

The consortium consists of CITIC Group, Baosteel Group, Anshan Iron & Steel Group, Shougang Corporation and Taiyuan Iron & Steel.

CBMM, located in Minas Gerais state, develops niobium products, niobium applications and related technology.

According to the data from the official agencies, Brazil holds the largest part of total known niobium reserves in the world.

The demand for niobium is expected to grow faster than the expansion in world crude steel production.