by Staff Writers
Shanghai (AFP) Sept 1, 2011
Three Chinese firms will pay $1.95 billion for a 15 percent stake in Brazilian rare metal mining firm CBMM, the world's biggest producer of niobium, state media said Thursday.
The deal comes as China snaps up key resources globally in a bid to secure stable supplies to keep its economy -- the world's second biggest -- moving.
CBMM, Companhia Brasileira de Metalurgia e Mineracao, produces niobium, a rare metal crucial to the production of high-grade steel for cars and other products.
China's Taiyuan Iron and Steel Group, financial conglomerate CITIC Group and Baosteel Group set up an investment vehicle for the deal, due to be completed Thursday, the official Xinhua news agency said.
"This successful acquisition has major significance for the stable domestic supply of niobium resources," Xinhua quoted experts as saying.
Taiyuan Iron and Steel Group, based in the northern province of Shanxi, is a major producer of stainless steel while Shanghai-based Baosteel is China's second largest steel maker by output.
Chinese company officials could not be reached for comment on the report, which quoted sources.
The deal follows a similar move by a consortium of Japanese and South Korean companies, which also took a $1.95 billion stake in CBMM in March.
Japanese members of the consortium included Nippon Steel, JFE Steel, trading house Sojitz and the state Japan Oil, Gas and Metals National Corp. The South Korean entities were Posco and the National Pension Service.
At the time, the companies said they sought stable supplies of the metal as China, India and other emerging countries produced more high-grade steel.
Global demand for niobium grew around 10 percent annually while imports of the metal to China almost doubled over the past four years and will continue to rise in coming years, the Xinhua report said, but gave no figures.
CBMM is estimated to control more than 80 percent of the world's niobium market.
The miner, part of the Moreira Salles Group, is involved in the extraction, processing, manufacturing and marketing of niobium-based products, according to the company's website.
Currently, around 75 percent of niobium consumption is for alloy steels, and the metal is used in products ranging from aircraft to turbines.
Global Trade News
Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.
China appeals WTO ruling on raw materials exports
Geneva (AFP) Aug 31, 2011
China has appealed against a World Trade Organisation ruling that it illegally restricted exports of key raw materials, the global trade body said Wednesday. "China notified the Dispute Settlement Body, which consists of all WTO members, of its decision to appeal the panel reports," the WTO said. "The Appellate Body has up to three months to conclude its report," it said. The appeal ... read more
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2011 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|