MMX Rallies After Closing Sale of Chile Assets to Cooper Mining

MMX Mineracao & Metalicos SA, the mining company founded by former billionaire Eike Batista, rose the most on the Ibovespa after concluding the sale of its assets in Chile to Inversiones Cooper Mining SA.

MMX rose 4.7 percent to 89 centavos at 1:53 p.m. in Sao Paulo, extending its two-day gain to 47 percent. The Ibovespa index declined 0.8 percent today

“Investors are concerned about Batista’s companies, but there are good businesses worth saving,” Sandro Fernandes, a trader at the brokerage firm Geraldo Correa, said in a phone interview from Belo Horizonte, Brazil. “Today’s rally on MMX shows people believe it can rebound.”

Under the agreement with Cooper Mining, MMX will get quarterly royalty payments from its Chilean assets of 80 cents per ton of dry iron ore, up to a cumulative $40 million, according to a regulatory filing today.

Trafigura Beheer BV, the world’s second-biggest metals trader, and Mubadala Development Co., the Abu Dhabi sovereign wealth fund, agreed last month to buy a 65 percent stake in the unit of MMX that controls the Sudeste port in Rio de Janeiro state by paying $400 million and assuming debt.

Batista, 56, has sold stakes this year in his power-generation, oil and shipping ventures and relinquished control of his port developer LLX Logistica SA (LLXL3) after missed output targets triggered a collapse in the valuation of his companies, erasing most of his fortune.

Oil producer OGX Petroleo (OGXP3) & Gas Participacoes SA, the centerpiece of Batista’s commodities group, filed for bankruptcy protection Oct. 30.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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