CSN Signs Contract to Supply 10 Million Tons of Ore to Anglo-Swiss Company

The Agreement Is an Extension of Supply with Glencore, As in February Another Contract Already Provided for the Sale of 22 Million Tons for Five Years.

CSN (Companhia Siderúrgica Nacional) and Glencore Xstrata finalized talks yesterday, Friday (07/12), to expand a contract for the supply of iron ore over a period of 5 years.
Glencore is a Switzerland-based Anglo-Swiss multinational company engaged in mining commodities, also dealing with metals, agricultural products, and energy.

CSN issued a statement announcing that the contract includes a pre-payment of US$ 250 million to supply an additional 10 million tons of ore over five years.
The statement also said: “This new installment already reflects CSN’s better credit profile by embedding lower financial costs and represents an additional step by the company towards a healthy and sustainable capital structure, as part of its previously disclosed deleveraging plan.”

The Previous Contract

CSN had already closed a deal with Glencore Xstrata last February, involving a pre-payment of around US$ 500 million for the supply of 22 million tons also for five years.

The President of CSN, Benjamin Steinbruch, had already announced that the company and Glencore were very close to finalizing a new contract.

According to analysts, the merger of Glencore and Xstrata creates the most comprehensive commodities company in terms of geography and portfolio. While Glencore has specialized in agricultural products and energy, Xstrata has made significant investments in coal, copper, and nickel reserves in Africa, South America, and Asia.

The Glencore Xstrata Group has Brazil as one of its main investment focuses.

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