Glencore tipped to net $500m iron ore deal
Global trader expected to wrap up five-year agreement with ailing Brazilian steelmaker in the first quarter, according to sources
London — Global trader Glencore is close to finalising a deal to make a $500m payment to the mining arm of Brazil’s Companhia Siderurgica Nacional (CSN) for iron ore cargoes to be delivered over five years, sources familiar with the matter said. One source said Glencore would sign the deal no later than the first quarter. The Brazilian steelmaker is aiming to reduce debts that piled up after an iron ore and steel price rout in 2015/16 and a severe recession in Brazil, prompting investors to demand asset sales. Glencore, which sources said would secure backing from banks for the deal, and CSN declined to comment. The deal with Glencore comes against a backdrop of rising iron ore prices, after the collapse of a tailings dam run by Brazilian mining giant Vale, which forced the firm to announce plans to cut 10% of its output. Benchmark iron ore prices were trading at $85.3 a ton on Thursday, after plunging as low as $38.50 ton at the end of 2015. To cut debts, CSN sold its US unit for $...
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