OREANDA-NEWS. August 17, 2011. MMX, Eike Batista’s EBX Group mining company, announced today (12/7) that it has retained Itau Bank and West LB Bank as financial advisors for the structuring of project financing for the expansion of the Serra Azul project in Minas Gerais.

Together, the two banks will obtain USD  1.8 billion from development banks and other national and international development financing agents, export credit agencies and national and international banks. A substantial part of the resources for the project is in final stage of analysis by Itau and West LB and should be approved within the next 90 days.

The amount in question represents 75% of the total investment of BRL  4 billion for the expansion of Serra Azul, the rest will be invested by MMX itself. This amount, which represents an increase of 14% compared to the estimate made in December 2010, reflects the marking to market of prices for machinery, equipment and services and adjustments made at the conclusion of the basic engineering project and already includes the possibility of new increases in capacity.

For MMX CEO Roger Downey, the partnership with Itau and West LB, important players in world financial market, attests to the fact that MMX is well prepared and has all the prerequisites to develop a project of this magnitude. "Today, we already have the capital required for the implementation of the expansion and, with the signing of these contracts, we are guaranteeing all the resources necessary to complete the first and most important phase of the journey towards 46 million tons of iron ore per year. MMX is already on its path to growth,"emphasizes Downey.