Brazil's MMX the iron ore mining company controlled by billionaire Eike Batista said that it was in talks with Chinese and South Korean development banks to finance its BRR 4 billion (USD 2.3 billion) Serra Azul project.

Mr Guilherme Escalhao CEO of MMX said the company is looking to finance 75% of Serra Azul's expansion plans, for which it will also open talks with export credit agencies in Europe and with Brazil's BNDES development bank.

The mine currently puts out 7 million tonnes of iron ore a year. Serra Azul's expansion would bring output to 24 million tonnes a year, which would be exported from MMX' Superporto Sudeste port that it plans to build on the coast of Rio de Janeiro.

Mr Escalhao said that "As partners with South Korea and China, we are eligible to seek financing from the development banks of these countries. We've already opened talks and some representatives of these banks will come to Brazil in the coming days to visit the site."

Escalhao said he hoped to secure financing early in 2012 and construction would then begin in the second quarter of next year.

(Sourced from Reuters)