Brazil's CSN Mineração concludes new financing deal with Glencore

Brazilian iron ore miner CSN Mineração concluded an offtake agreement with Glencore under which it will obtain up to US$500mn in advance. 

"The transaction comprises a prepayment from Glencore to the company of up to US$500mn for the supply of approximately 13Mt of iron ore in four years, starting in 2024. The disbursement will occur when certain conditions are met," CSN Mineração, the mining arm of steelmaker CSN, said in a statement.

The deal is part of CSN Mineração’s plans to finance an expansion of production.

In December, the firm announced capex of 13.8bn reais (US$2.7bn) for 2023-27. With the investment, the company looks to increase its own production and the purchase of iron ore from third parties from 34Mt last year to 68Mt in 2027.

The operation also marks a strengthening of CSN's relationship with Glencore, as it is the fourth such agreement between the two in recent years.

In February 2019, CSN signed a US$500mn accord with Glencore to deliver 22Mt of iron ore over five years and in July that year the two companies reached a US$250mn accord for 10Mt of iron ore over five years. Then in July 2020, a third agreement was reached involving US$115mn for 4Mt of iron ore over five years.