China Niobium acquired 15% stake in CBMM [ 2011-09-02 ]

A group of five Chinese companies consisting of CITIC Group, Baosteel Group Corporation, Anshan Iron & Steel Group Corporation, Shougang Corporation and Taiyuan Iron & Steel Group Co., Ltd. formed a consortium named China Niobium Investment Holdings Ltd. and acquired 15% stake in Companhia Brasileira de Metalurgia e Mineração -CBMM for US$1.95 billion.

CBMM, a Brazilian company located in Araxá in the state of Minas Gerais, is the world leader in the development, industrialization and commercialization of niobium products. CBMM has over 50 years of successful operating history and has been a pioneer in developing niobium applications and related technology.

Niobium is mainly used as an alloying element in steels, increasing strength and toughness simultaneously, and resulting in end-products with enhanced efficiency and environmentally friendlier. Key applications include: automotive industry, oil and gas transmission pipelines, large structures such as bridges, towers and buildings, and aircraft engines.

Brazil holds the largest part of total known niobium reserves in the world according to data from official agencies, and CBMM is thought to hold rights to the best niobium reserves in Brazil. Such investment has a very relevant strategic value for all parties.

Worldwide demand for niobium recorded an annual growth rate of some 10% from 2002 through 2009, buoyed by growing need for high-grade steel. Demand for niobium is projected to grow faster than the expansion in world crude steel production.

Source:Baosteel News Centre