Tag Archives: Iron & Steel (TRBC level 4)

UPDATE 1-Cemig Brasil plans IPO of gas distribution, sale of Alianca shares | Instant News


(New throughout, adding information across company divestment plans, stock reactions)

SAO PAULO, April 28 (Reuters) – Brazilian power company Cemig is planning an initial public offering of a gas distribution unit and a wave of divestments, executives said on Wednesday, and the company’s shares rose more than 4% after the news.

During an online investor event, executives said they planned to sell about 9 billion reais ($ 1.66 billion) in assets by 2025, including company stakes in the large hydroelectric dams of Belo Monte and Santo Antonio.

As part of the divestment, the company, officially Cia Energetica de Minas Gerais SA, also plans to sell its stake in Alianca Energia, a joint power plant venture with Brazilian mining company Vale SA, executives said.

Cemig is the public electricity company of Minas Gerais, Brazil’s second most populous state.

The shares of the Sao Paulo-listed company rose 4.4% in midday trade, the second-biggest winner on Brazil’s benchmark Bovespa equity index.

Earlier in the event, Minas Gerais Governor Romeu Zema reiterated his intention to privatize the company, saying he wanted it finished by the end of his term in 2022.

“I want the company to be privatized during my tenure,” said Zema. “Maybe not to sell it outright, but to receive an injection of (private) capital and thereby weaken the state, which always intervenes inappropriately, thus losing controlling stake and stopping hurting Cemig.” (Reporting by Luciano Costa; Written by Gram Slattery; Editing by Louise Heavens and David Gregorio)

.



image source

Vale Brasil beat first-quarter profit estimates, supported by iron ore demand | Instant News


FILE PHOTO: A display showing the logo of the Brazilian mining company Vale SA at its headquarters in downtown Rio de Janeiro 20 August 2014. REUTERS / Pilar Olivares

RIO DE JANEIRO (Reuters) – Iron ore miner Vale SA beat first-quarter profit forecasts on Monday, with Brazilian companies being boosted by record performances in the ferrous minerals division.

In the securities filing, Vale reported a net profit of $ 5.55 billion, well above Refinitiv’s consensus estimate of $ 5.06 billion. This figure also shows a significant increase on an annual and quarterly basis, as it is not much influenced by factors such as compensation to the victims of the deadly 2019 Brumadinho dam disaster.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, totaled $ 8.35 billion. That slightly missed Refinitiv’s $ 8.4 billion estimate but the company said pro forma EBITDA figures – removed from some non-recurring items – stood at $ 8.47 billion.

EBITDA for the company’s ferrous minerals division was $ 7.81 billion, which the company said was an all-time record for the first quarter.

In comments accompanying the results, Vale noted that it received a premium for refined iron ore and pellets of $ 8.30 per tonne in the first quarter, well above $ 4.30 in the fourth quarter, amid strong demand for steelmaking materials in the first quarter. China and other markets. .

The company reiterated its short-term bullish stance on iron ore, copper and coal, but warned of a “small surplus” in the nickel market amid “tough production” in China and Indonesia.

($ 1 – 5,4350 reais)

Reporting by Gram Slattery and Roberto Samora; Edited by Christian Plumb and Lincoln Feast.

.



image source

German steelmakers are asking for billions of state aid – Der Spiegel | Instant News


BERLIN, April 23 (Reuters) – German steelmakers want a binding commitment from the government regarding financial support for the industry’s transition to more climate-friendly manufacturing, German magazine Der Spiegel reported on Friday.

European steelmakers are under pressure to reduce carbon emissions while maintaining profitability in a market where there is fierce competition, particularly from China, while pollution permit fees are soaring higher.

The heads of major German steelmakers including Thyssenkrupp and Salzgitter have called for assurances that the country will help finance the transformation for an amount that could reach double-digit billion euros, Der Spiegel said.

They plan to discuss the matter with Economy Minister Peter Altmaier on May 3, according to the magazine.

Reporting by Riham Alkousaa, editing by Kirsti Knolle

.



image source

German steelmakers are asking for billions of state aid – Der Spiegel | Instant News


BERLIN, April 23 (Reuters) – German steelmakers want a binding commitment from the government regarding financial support for the industry’s transition to more climate-friendly manufacturing, German magazine Der Spiegel reported on Friday.

European steelmakers are under pressure to reduce carbon emissions while maintaining profitability in a market where there is fierce competition, particularly from China, while pollution permit fees are soaring higher.

The heads of major German steelmakers including Thyssenkrupp and Salzgitter have called for assurances that the country will help finance the transformation for an amount that could reach double-digit billion euros, Der Spiegel said.

They plan to discuss the matter with Economy Minister Peter Altmaier on May 3, according to the magazine.

Reporting by Riham Alkousaa, editing by Kirsti Knolle

.



image source

BHP, Vale Samarco JV filed for Brazilian bankruptcy protection | Instant News


FILE PHOTO: Brazilian mining company Vale SA logo seen in Brumadinho, Brazil January 29, 2019. REUTERS / Adriano Machado / File Photo

RIO DE JANEIRO (Reuters) – Samarco Mineracao SA, a joint venture between Brazilian miner Vale SA and BHP Group Ltd, has filed for bankruptcy protection to prevent creditor claims from affecting its operations, Vale said in a securities filing Friday.

The collapse of the dam at the Samarco mining complex in 2015 killed 19 people and severely polluted the Doce River with mining waste, one of Brazil’s worst environmental disasters. The facility, which resumed production in December, was the focus of significant litigation from bondholders with nearly $ 5 billion in debt.

“The filing (judicial reorganization) is needed to prevent ongoing legal action … from affecting Samarco’s ability to produce, send, receive for its exports and to fund normal activities,” the company said.

Vale said the filing for bankruptcy protection would not affect Samarco’s ability to pay compensation to those affected by the 2015 dam explosion. It said negotiations outside the court with creditors had slowly failed over time.

The court reorganization request, filed in the state of Minas Gerais, is roughly similar to the United States’ Chapter 11 bankruptcy filing.

Samarco has $ 4.7 billion in financial debt from unrelated parties, Vale said. In the years following the Samarco disaster, Samarco has negotiated with creditors to reach a restructuring agreement. However, those talks slowed down in 2019 following changes to dam regulations in Brazil, which materially affected operations at Samarco, Vale said.

In 2019, another dam exploded at the Vale mine in Brazil, killing some 270 people and prompting tightening of rules governing mining dams.

Most of the debt is now held by “investors active in distressed asset markets,” rather than original bondholders at the time of the disaster, Vale said.

Reporting by Gram Slattery; Edited by Christian Plumb and Will Dunham

.



image source