Nippon, POSCO, others in $1.8b Brazil rare metal deal

Nippon Steel Corp, JFE, POSCO and others will buy a 15% stake in a Brazilian rare metal miner for around USD 1.83 billion, South Korea's National Pension Service said on Thursday.

Japanese investors including Nippon Steel, JFE Holdings and trading firm Sojitz Corp will buy a 10% stake of Brazil's Companhia Brasileira de Metalurgia e Mineracao (CBMM), a NPS spokesman said.

CBMM mines and processes niobium, a rare metal used to produce high-grade steel used in autos and pipelines and makes steel products lighter and stronger.

South Korea's POSCO and National Pension Service will joinly buy 5% of the unlisted company, investing around 350 billion won (USD 312 million) each, the NPS spokesman said.

By 0045 GMT, shares in Nippon Steel rose 0.3% and JFE added 0.7%, roughly in line with the benchmark Nikkei, while POSCO gained 1.1%, also in line with the broader market.