By Diana Kinch and Alex Macdonald
LONDON--Glencore International PLC (GLEN.LN) is purchasing a
small stake in Brazilian iron ore producer Ferrous Resources Ltd.,
a Ferrous spokeswoman said Wednesday, adding further details would
be announced later in the day.
The international trader is also closing a contract to buy 20
million metric tons of iron ore from Ferrous over 4 years, she
added.
Glencore has previously bought 5 million metric tons of iron ore
from Ferrous on a spot basis, she said.
Glencore has exclusive negotiating rights to increase its
holding in Ferrous, in exchange for project financing, according to
a person familiar with the matter.
Ferrous produced approximately 3 million tons of iron ore in
Brazil last year and expects to raise this to 5 million tons this
year, according to the person.
Write to Diana Kinch at diana.kinch@dowjones.com or Alex
Macdonald at alex.macdonald@dowjones.com
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