Nippon Export and Investment Insurance (NEXI) will purchase loan insurance for an iron ore plant upgrading project in Brazil, to be undertaken by CSN Mineracao, an iron ore production and sales company that is a subsidiary of the Brazilian steel producer Companhia Siderurgica Nacional SA (CSN).
Insurance is provided for a 12-year loan of $ 350 million co-financed by BNP Paribas, Tokyo branch; Citibank, NA, Tokyo Branch; Credit Agricole Corporate and Investment Bank, Tokyo branch; and Société Générale, Tokyo branch.
Itochu Corporation has a minority stake in CSN Mineracao, while JFE Steel Corporation and Kobe Steel have entered into long-term offtake agreements to purchase iron ore produced by CSN Mineracao.
According to NEXI, given the pronounced oligopolistic structure of the maritime iron ore market by large mining companies, it is important for Japan that its companies have the long-term right to purchase iron ore from independent companies, in particular. plus large mining companies, in line with the country’s strategy for securing resources.
The project is expected to support a stable supply of iron ore to the Japanese steel market. A portion of the loan will be used to develop beneficiation plants to meet demand from Japanese steel companies to maintain the current quality of high iron, low impurity iron ore.
In addition, given that CSN Mineracao will use the loan to replace the conventional tailings dam with a filter press (a facility for dewatering tailings), the project is expected to help improve the safety of plant operations.