NMDC eyes Brazil mine stake for $2.5billion

Indian state-run miner NMDC Ltd is set to buy 50% of Ferrous Resources Ltd's Brazilian operations for $2.5 billion, the Economic Times newspaper said on Monday.                                           

Under the proposed deal, the Ferrous group will issue fresh shares to NMDC over the next few years, it said, quoting an unnamed executive involved in the negotiations.                                           

Ferrous Resources's website says it aims to become a major supplier of iron ore products to the global steel industry and has acquired a number of substantial iron ore mineral assets in Brazil.                                           

The Ferrous group has properties in several countries including in the United States, Brazil and Canada, the Economic Times said, adding the funds will be used for developing the mines and building infrastructure.                                           

NMDC chairman Rana Som refused to confirm the development to the paper, but said his company was looking for natural resources across markets.                                           

NMDC last month filed a draft prospectus to sell 8.4% in a follow-on public offering.