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[Ferro-Alloys.com] Companhia Siderúrgica Nacional announced that CSN Mineração SA signed on this date a new long-term iron ore supply contract with the Swiss trading company Glencore International AG. The transaction involves an initial prepayment to CSN Mineração of USD 115,000,000.00, related to the supply of iron ore of approximately 4 million tonnes for up to 5 years.

 

This new contract has mechanisms that give it flexibility so that the amount of the prepayment is increased if it is in the interest of the parties, and also reflects CSN’s better credit profile by incorporating better conditions in relation to previous contracts, in particular a grace period for amortization. The disbursement will occur when certain conditions precedent are met, which are customary for this type of transaction.

 

Source: steel guru