GME4 attracting foreign investors
"Brazilian mining exploration company Global Mining Exploration, or GME4, is attracting foreign investor interest in a proposed sale of 80% of its PI4 iron ore mine project ", a company official said Wednesday.
"We have been in talks with Indonesian investors and have also had interest from India's Sesa Goa, and two Chinese companies, China Minmetals and China Nonferrous Metals," GME4 partner Joao Carlos Cavalcanti told Dow Jones Newswires.
GME4 has ambitious plans and aims, by 2012, to become the alternative iron ore supplier to the three global majors:
"We will play hard to compete," Cavalcanti said.
Cavalcanti, a geologist, sold an iron ore deposit three years ago to Indian investor Pramod Agarwal in
GME4's roadshow, organized by Credit Suisse, will start in Dubai and take in India, Australia, Japan, Korea, China, Russia and Europe before ending in the U.S. in mid-June. According to Cavalcanti, the PI4 mine will be able to produce 20 million metric tons a year of ore pellet feed worth $1.4 billion. PI4 is located in
According to Cavalcanti, the ore will arrive at port for a total cost of between $21 and $22 per ton, including mining, pellet-processing and transportation.Cavalcanti said he has signed an advantageous energy supply contract for the mine from the Sobradinha dam, the largest in northeast Brazil.He said he would pay between $4 and $7 per ton for the electricity used in processing the iron ore.
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