Dow Jones reported that Indian iron ore mining companies and Chinese steel mills have been the first to show interest in Brazil's giant PI4 iron ore deposits.

Mr Joao Carlos Cavalcanti, partner in Brazil's Global Mining Exploration, or GME4, told Dow Jones Newswires that "The Indians represent six iron ore mining companies with China supply contracts.”

Mr Cavalcanti said a meeting was scheduled with the Indian group, which he could not name for confidentiality reasons, around July 17.

Mr Cavalcanti said that GME4 had also received a delegation last week in Sao Paulo representing a pool of six small Chinese steel mills who were also interested in PI4.

He has recently returned from a meeting with mining investors in London, Goa and South Africa.

GME4 aims to sell an 80% stake in its USD 2.4 billion valued, 800 million tonne PI4 iron ore mine in Piaui State in northeastern Brazil. The Piaui deposits have around 32% iron content and are 16 kilometers from the route of the Transnordestina Railroad, which is expected to be operational in 2011. The railroad will connect two relatively new deepwater ports: Suape near Recife, and Pecem, near Fortaleza.

(Sourced from DJ)