Cosan starts new investment strategy with offer by port and JV in mining – Money Times

The closing of the transaction is subject to precedent conditions, such as regulatory and competition approvals (Image: REUTERS/Amanda Perobelli)

THE cosan (CSAN3) announced on Monday a new investment strategy through a fund structure, through which it will make contributions with its own resources and eventually from third parties in new business, according to a relevant fact disclosed to the market.

The move already includes, according to the company, the presentation of a binding proposal for the acquisition of 100% of TUP São Luís, a port terminal located in the capital of Maranhão, for 720 million reais.

It also involves the signing of a memorandum of understanding to enter the mining area through a joint venture with Grupo Paulo Brito, controller of Aura Minerals, which will explore iron ore for shipping through the port in question.

The offer for the port was sent by Cosan’s subsidiary Atlântico to São Luís Port Company, owned by the Chinese CCCC, and to minority shareholders, who add a 49% stake in the terminal, the company said.

The closing of the transaction is subject to precedent conditions, such as regulatory and competition approvals, as well as CCCC corporate approvals.

In addition, the initiative also involves the signing of a memorandum of understanding, also through Atlântico, to enter the mining area through a joint venture with Grupo Paulo Brito, controller of Aura Minerals, which will explore iron ore for through the port in question.

The memorandum provides that Atlântico will hold 37% of the total capital and shared control of the new company, that is, 50% of the company’s common shares after the port and cash contribution, said Cosan.

“(The joint venture) will be an integrated mining and logistics company, which will own, in addition to the port, exploration rights for mining assets in three mineral projects located in the State of Pará, with significant potential for iron ore reserves, to be through the port”, detailed the company.

The first mineral project to be explored by the joint venture is located near Parauapebas (PA), in the Carajás region, connected to the port by the Carajás railway, and exploration is scheduled to start in 2025.

The new company will have Juarez Saliba de Avelar, ex-Vale and CSN, as its chief executive, while Julio Fontana will serve as an advisor and senior consultant.

“Cosan joins a strategic partner in a new line of business, contributing its port logistics and management expertise,” said the company.

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