Brazil's Mineracao Usiminas Signs Iron Ore Mining Lease with MBL for 30 Years

By Joel ScanlonJul 17 2011

Mineracao Usiminas, the iron-ore unit of Brazilian steelmaker Usinas Siderurgicas de Minas Gerais SA has leased mining rights from MBL Materiais Basicos. Mineracao Usiminas has also compiled an iron ore stockpile that will let it meet its iron ore production target.

The mining rights have been leased in Brazil's Minas Gerais state at Serra Azul. The company will hold the lease for 30 years and will extract the 145 million metric tons of iron ore which are estimated to exist in the area.

Mineracao Usiminas is to pay MBL $7.50 for each ton of iron ore that they mine. However the price per ton may vary as per the international iron ore prices and is likely to be paid on a monthly basis. MBL is also to help Mineracao Usiminas’ mining activities at the 253 million tons of its own iron ore reserves in the vicinity, the steelmaker said.

Mineracao Usiminas is also to acquire a 6 million ton iron ore stock pile from MBL at a price of $12.50 a ton. The iron ore processing plant owned by MBL which is capable of processing one million tons of iron ore a year will also be acquired by Mineracao Usiminas.