Regal Group International: ENRC continues spending spree paying $304 mln to expand in Brazil.

Oct. 19, 2010 - PRLog -- Eurasian Natural Resources Corporation has informed Regal Group International that they have agreed to pay up to $304 million for additional iron ore assets in Brazil in order to expand its South American base after a similar take over there recently.

The new acquisitions announced this week, together with their existing expansions could quadruple the groups iron ore output to around 71 million tonnes annually, with two thirds of this coming from Brazil.

ENRC has been on a takeover and expansion drive over the last 12 months, diversifying into other metals and outside its home base into Africa and South America., Regal Group International sources report.

In September the group announced the takeover of the remainder of the BML project in Brazil for $670 million and secured an option to acquire an adjoining project for $150 million.

"Together, these acquisitions, which exceed our hurdle rate of return, underscore the group's focus on value enhancing growth in its iron ore division, as well as our increased commitment to Brazil," the groups CEO Felix Vulis told Regal group International.

In the company’s most recent deal ENRC bought 100% of Mineracao Minas Bahia SA and 51% of Mineracao Peixe Bravo SA as well as buying various assets from Steel do Brasil Participações SA.

Mineracao Minas Bahia SA owns the rights to the Jiboia project, about 150 km’s away from the new East-West railway currently being constructed by the Brazilian government.

In April the group bought a 12-percent stake in Northam Platinum Ltd. in South Africa for about $299 million, expanding its portfolio in Africa.

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