Brazilian iron ore mining company MMX SA announced that on December 3rd,the Board of directors of MMX approved a capital increase of approximately BRL 1.4 billion,upon private subscription of new common,registered,book entry shares of no par value,pursuant to the Notice to Shareholders published on the date hereof.
This transaction further strengthens the company's current capital structure,contributing for implementation of the expansion project of the Serra Azul Unit,in combination with the long-term facility currently being developed with the National Social and Economic Development Bank,the allocation of which has already been approved by BNDE Eligibility Committee.
With a current production capacity of approximately 10 million tonnes of iron ore per year,primarily intended to supply the domestic market,MMX is engaged in the development of the expansion of its production capacity,based on a project with certified mineral reserves and integrated logistics,which will enable the company to allocate its entire production to the international market.
The new plant,in initial stage of construction,will have a production capacity of up to 29 million tonnes of iron ore per year,with large scale processing of compact itabirite.The production of the Serra Azul Unit will be transported through the MRS Logística SA railway and the iron ore will be shipped to the international market through the Sudeste Superport.The estimated start-up of the Sudeste Superport is scheduled for the Q4 of 2013.
