just a little reminder of the future uses and growth for niobium
Chinese Steelmakers Buy Into Brazil's CBMM
Sept. 2, 2011 4:39 p.m. ETRIO DE JANEIRO—A group of Chinese steelmakers together with China's CITIC bank have purchased 15% of Brazil's Companhia Brasileira de Metalurgia e Mineracao, the world's biggest niobium producer, for $1.95 billion.
The Chinese consortium comprises Baosteel Group Corp., Shougang Corp., Anshan Iron & Steel Group Corp. and Taiyuan Iron & Steel Group Co., which currently buy niobium from CBMM, the Brazilian company said Friday. Niobium is used to strengthen steel for sale to the automotive, oil and gas pipeline and heavy-construction sectors.
China, whose steelmaking capacity has risen to over 700 million metric tons a year, is the world's biggest importer of niobium and is seeking to secure global supplies. Last year, China's state-owned East China Mineral Exploration Development Bureau acquired control of Australia's Globe Metals & Mining Ltd. GBE.AU -2.50% Globe Metals & Mining Ltd. Australia: Sydney $0.04 -0.00 -2.50% Oct. 3, 2014 5:10 pm Volume (Delayed 20m) : 381,933 P/E Ratio N/A Market Cap $18.32 Million Dividend Yield N/A Rev. per Employee N/A More quote details and news » GBE.AU in Your Value Your Change Short position , which has niobium reserves in Africa.
"The [CBMM] investment is of great strategic value both for the five Chinese companies and for CBMM," the Brazilian company said.
Control of CBMM will be retained by the Moreira Salles family, which will hold 70% of the total capital, a CBMM spokesman said. The Moreira Salles family is one of the owners of Brazil's Itau Unibanco Holding SA ITUB +2.92% Itau Unibanco Holding S/A ADS U.S.: NYSE $14.09 +0.40 +2.92% Oct. 3, 2014 4:02 pm Volume (Delayed 15m) : 19.81M AFTER HOURS $14.09 0.00 % Oct. 3, 2014 6:06 pm Volume (Delayed 15m) : 261,518 P/E Ratio 9.53 Market Cap $73.27 Billion Dividend Yield 0.57% Rev. per Employee $733,218 More quote details and news » ITUB in Your Value Your Change Short position bank.
In March, CBMM sold a 15% stake to a group of Japanese and Korean companies, including Nippon Steel Corp. 5401.TO +0.11% Nippon Steel & Sumitomo Metal Corp. Japan: Tokyo ¥275 +0 +0.11% Oct. 3, 2014 3:00 pm Volume (Delayed 20m) : 33.23M P/E Ratio 11.01 Market Cap ¥2,612.43 Billion Dividend Yield 1.46% Rev. per Employee ¥66,271,300 08/27/14 Kia Plans $1 Billion Mexico As... 08/15/14 Why J-Power Is Rare Winner in ... More quote details and news » 5401.TO in Your Value Your Change Short position , JFE Steel Corp., Sojitz Corp. 2768.TO -0.60% Sojitz Corp. Japan: Tokyo ¥166 -1 -0.60% Oct. 3, 2014 3:00 pm Volume (Delayed 20m) : 19.86M P/E Ratio 7.36 Market Cap ¥207.75 Billion Dividend Yield 3.01% Rev. per Employee ¥112,775,000 09/28/14 Lynas Loss Deepens, Plans to R... 07/30/14 Lynas Scrambles to Protect Fin... More quote details and news » 2768.TO in Your Value Your Change Short position and Posco, also for $1.95 billion.
Brazil holds the world's biggest known niobium reserves, according to national mining department DNPM, with CBMM playing a dominant role in the market. In 2010, CBMM had net sales of about 2.9 billion Brazilian reais ($1.76 billion) and profits of 1.1 billion reals.
"Global demand for niobium rose about 10% a year between 2002 and 2009 due to the growing need for specialty steels," CBMM said in the statement. "In future niobium demand should continue to grow faster than steel production because of greater use of niobium in steelmaking technologies."
AI
