11/14/2008 14h54
Minsur closes acquisition of US$ 400 million in Brazil
Valor Econômico - 11/14/2008
Amidst the world financial crisis, yesterday Peruvian tin mining Minsur S.A. closed a deal of US$ 400 million (RS$ 850 million) in Brazil - it paid nearly US$ 215 million in cash, at the exchange of the day, and assumed debts evaluated at US$ 175 million. The money went directly to the account of the Paranapanema Company, which sold its production of tin assets in the North of the country and in São Paulo to the Peruvian company, the third biggest of the world in the extraction and refine of this metal. Fortunato Brescia Moreyra, executive director of Minsur, was greatly optimistic yesterday morning in São Paulo before going to the bank to make the payment. "When we closed the purchase, on September 19, the world crisis scenario was not as bleak as it is now, but even though we see a great opportunity of expansion in this acquisition, because we always make investments looking at the long run", he affirmed to Valor. According to Brescia, Mineração Taboca, which has been extracting tin ore in the middle of the Amazon since the 1980s, appeared as a good opportunity in the tin business, in which the group has 12% of the world market with its operations in Peru. "It is the most important in Brazil and very relevant in the world". According to the executive, the Brazilian mine, which produces around 7 thousand tons of metal per year today, has a potential that allows its exploitation during 20 to 25 years. The investment in Brazil is the first step of Minsur's internationalization. "In the tin business, it would be natural that we would go to Bolivia, where there are many resources of the metal, but Brazil showed to be more attractive by having a more stable economy (and politics) than Bolivia". The first two years in Brazil, informed Brescia, will be to evaluate the acquired assets and to improve its operations to gain more efficiency and competitiveness. "Later there will be the expansion projects", he said. One of the objectives is to expand the participation of niobium and tantalum in the Taboca's income. Today, tin is responsible for 80%. "In the future, it should be between 55% and 60%".
