Brazil’s steel and iron ore producer Companhia Siderurgica Nacional (CSN) has approved a new business plan for its mining unit Mineração to fund its expansion projects.
CSN approved the IPO plan for CSN Mineração, to finance part of the mining unit’s business plan, it said in a securities filing on September 21, without disclosing the amount to be raised through the offering.
However, according to media reports, the Brazilian company plans to utilize the funds to increase CSN Mineração’s output capacity to 108mn mt per year from 33mn mt per year by 2033.
CSN had not responded to queries from Davis Index about the matter by the time of publication.
The company’s total steel sales in Q2 2020 fell by 14pc to 1mn mt, from 1.16mn mt in Q2 2019, after demand in the domestic steel market weakened because of the COVID-19 pandemic.
CSN Mineração is the second-largest iron ore exporter in Brazil and the sixth in the world.
Crude steel production in Brazil increased by 6.5pc to 2.70mn mt in August, from 2.53mn mt during the same month last year, according to the latest data released by the World Steel Association (worldsteel).