Chinese Trio Takes Stake in Brazilian Miner

Taiyuan Iron and Steel Group, CITIC Group and Baosteel Group have set up an investment vehicle to acquire a 15% stake in Brazilian miner Companhia Brasileira de Metalurgia e Mineracao, for $1.95bn, according to Chinese state media. CBMM, as the privately-held target is known, specializes in the rare earth metal Niobium, which is used in the production of high-grade steel. The deal from the three state-owned enterprises follows a March transaction by a consortium of Japanese and South Korean companies, also acquiring a $1.95bn stake. CBMM is part of the Moreira Salles Group and operates primarily in the state of Minas Gerias.