Porto Sudeste should start operating in August

Source: Exam

On Thursday, the 27th, mining company MMX completed the sale of Porto Sudeste, in Itaguaí (RJ), to a consortium formed by Impala, a division of Dutch trading company Trafigura, and Mubadala, an Abu Dhabi sovereign wealth fund.

The new partners will own 65% of the undertaking, in which they will invest US$ 400 million. The forecast is that the port will start operating in August, with about two years of delay. The deal seals the departure of Eike Batista from control of yet another asset of the former empire X.

With a focus on iron ore, the Southeast is a window for the export of mining companies from the Serra Azul region, in Minas Gerais. The projection is that seven million tons will be shipped through the complex in 2014. Next year there will be 36 million tons and, in 2016, the port should reach full capacity: 50 million tons.

The consortium negotiates contracts for the purchase of ore with 15 small and medium-sized producers. Trafigura's representative on the board of Porto Sudeste do Brasil, Mariano Marcondes Ferraz recalls that many mining companies with assets in Minas have expansion plans, including Ferrous, Gerdau and Usiminas.

Currently, the port has contracts with Usiminas (up to 12 million tons/year) and MMX (seven million tons).

To make the operation of the port viable, the consortium is also mapping assets in the mining sector. The idea is to acquire a stake in one or more mining companies, or finance the expansion of these companies. The consideration would be an exclusive contract for the purchase of this new ore. MMX, however, is not on the radar.

The mining company's stake in Porto Sudeste will be 35%, and may reach 42,5%. The company will be entitled to a seat on the board and nothing prevents Eike Batista from assuming it. “Eike is a partner, but he has no direct participation in the management of the company”, stressed Ferraz. Trafigura and Mubadala will share the other six spots.

Executive Eugenio Mamede – formerly of Zamin and Vale – is the new general director of operations at the Sudeste Superport, nicknamed PortCo. It will be up to him to manage the day-to-day and the end of the works, 75% completed. The total investment in the first phase of the project is R$ 4 billion, which includes the US$ 400 million from the new partners.

Debt

Once the negotiations were over, Porto Sudeste do Brasil was left with a debt of US$ 1,2 billion. In addition to US$ 640 million for the port, it assumed US$ 540 million in obligations for the MMX mine, which is now debt-free. The new owners also renegotiated debts with banks. BNDES had contracted R$ 1,8 billion in financing for MMX Porto do Sudeste.

Part is in the disbursement phase, but R$ 934 million closed in 2012 were not released. Bradesco will transfer most of these resources.

Now, with the completion of the operation between MMX and Mubadala/Trafigura, the loans may be assumed by the new partners, with extended terms. When contacted, the BNDES did not comment on the matter. The information is from the newspaper O Estado de S. Paulo.