Glencore is said to build stake in Ferrous Resources - Bloomberg alleges

FTSE 100-listed integrated commodities producer Glencore International has reportedly purchased a stake in Ferrous Resources and is considering increasing its holding further, a news report published by Bloomberg alleged on Wednesday, citing "people with knowledge of the matter" as its sources.

According to the news article, which cited two unnamed people who it said had asked "not to be identified as the information is confidential", the commodities trading company reached an agreement with Ferrous to offer further funding by March 31st to help develop its Viga mine in exchange for a bigger stake.

Bloomberg reported: "Ferrous will consider any additional funding offer from Glencore without being obliged to accept it, the people said."

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Glencore has reportedly acquired stock from minority shareholders of closely held Ferrous, Bloomberg cited its sources as saying.

Ferrous Resources is based in Belo Horizonte, the capital of the state of Minas Gerais in Brazil. Its core business involves the exploration, exploitation and beneficiation of iron ore. It currently has three active mines comprising Viga in Congonhas, Esperana in Brumadinho and Santanense in Itatiaiui.

ShareCast contacted Glencore International's spokesman who declined to comment on the news report. No one was available to speak to ShareCast at Ferrous at the time of publication.

Glencore International's share price was down 1.11% to 378.80p at 11:57 on Wednesday.

MF