Itochu Corp and JFE Steel Acquire Additional Shares in NAMISA’s Iron Ore

Itochu Corporation and JFE Steel announced on Wednesday the both companies acquire additional shares in Brazil Japan Iron Ore Corporation from Nippon Steel and Sumitomo Metal Industries. Brazil Japan Iron Ore Corporation is an investing company for Brazilian iron ore producer and distributor, NAMISA. NAMISA is controlled by Brazilian steel maker CSN and the Japanese-Korean consortium. Itochu Corp acquires additional 19.24% shares in Brazil Japan Iron Ore Corporation at approximate 40.9 billion yen while JFE Steel acquires additional 6.45% shares at approximate 13.7 billion yen. The both companies plan to expand NAMISA’s capacity by construction of a pellet plant and an ore concentration plant.

Itochu Corp assumes 66.97% control in Brazil Japan Iron Ore Corporation by this acquisition while JFE Steel holds 25.78% shares. Kobe Steel and Nisshin Steel keep their shares in Brazil Japan Iron Ore Corporation unchanged. Brazil Japan Iron Ore Corporation holds 33.52% shares in NAMISA while POSCO of South Korea holds 6.48%. Japanese-Korean consortium has total 40% shares in NAMISA.

NAMISA plans to expand the iron ore sales to 39 million tonnes in 2014 from 15 million tonnes in 2009. NAMISA has 10% shares in MRS Railway to transport iron ore as well as a right to use Itaguai port which is possessed by CSN.

Nippon Steel decided closure of the investment in NAMISA since NAMISA’s expansion plan hasn’t progressed for past 2 years and Nippon Steel disapproves 3-year delayed new capacity expansion plan. Nippon Steel divides the fund to other raw material projects while continues iron ore purchase from NAMISA by long term contracts. Sumitomo Metals also decided closure of the investment due to the difference of management policy.