Brazil's MMX acquires control of sister firm PortX

permanent magnetic separator for iron ore

Brazilian iron-ore miner MMX Mineracao e Metalicos SA acquired control of sister company PortX Operacoes Portuarias SA, allowing it to fully integrate its mining, port and shipping operations and to offer port services to third parties.

MMX, controlled by Brazilian billionaire Eike Batista, acquired 92.28% of PortX, which is also controlled by Mr. Batista, in an auction worth a total of 6.34 billion Brazilian reais ($3.96 billion) on Brazil's Bovespa stock exchange Friday, according to a BM&F Bovespa statement. This followed MMX's recent public tender offer for shares in PortX, a spinoff from another company controlled by Mr. Batista, LLX Logistica SA. MMX will ship iron ore it produces in Minas Gerais state, southeast Brazil, through the Sudeste port in Rio de Janeiro state which is being developed by PortX. The port is due to start operations in 2012. MMX Chief Executive Roger Downey said earlier this month the company may strike new partnerships allowing it to ship from Sudeste ore that is produced by other miners in Minas Gerais. This follows a joint mining-and-shipping partnership recently struck between MMX and steelmaker Usinas Siderurgicas de Minas Gerais SA, or Usiminas...