Asian Investors Buy Stake in CBMM

A consortium of Asian investors acquired a 15% stake in Brazilian rare earth miner Companhia Brasiliera de Metalurgia e Mieracao (CBMM) for $1.8bn. CBMM produces niobium, a rare earth element used in high-grade steel. According to wire reports citing consortium member South Korea’s National Pension Service, the consortium is paying around $1.8bn for the stake, which would value the company at around $12bn. Nippon Steel, JFE, Kobe Steel, Sumitomo Metal, Posco, Sojitz and the Japan Oil, Gas and Metals National Corporation are said to also be consortium members. According to New York-based equity research firm Dahlman Rose, the move is likely an attempt to counter Chinese demand and limited export of rare earth minerals. In October, China temporarily halted the