UPDATE 2-ENRC pays $304 mln to expand in Brazilian iron ore

* Buys rights to Jiboia project, 150 km from new railway

* Jiboia capex $2.6 bln, looking at debt, equity options

* Output seen at 25 mln tonnes/yr by 2016/17

* ENRC shares dip 0.6 pct in line with sector

(Adds conference call, more details, quotes)

By Eric Onstad

LONDON, Oct 19 (BestGrowthStock) – Kazakh mining group ENRC (ENRC.L: )
agreed to pay up to $304 million for more iron ore assets in
Brazil, expanding its South American base after a similar recent

The further acquisitions announced on Tuesday, along with
existing expansions, have the potential to boost the group’s
iron ore output by fourfold to 71 million tonnes a year, with
two-thirds of it in Brazil.

The group has been on a takeover spree over the past year,
diversifying into other metals and outside its home base into
Africa and South America.

Last month, the company announced the takeover of the rest
of the BML project in Brazil for $670 million and got an option
to buy an adjoining project for $150 million. [ID:nLDE68K0BX]

“Together, these acquisitions, which exceed our hurdle rate
of return, underscore the group’s focus on value enhancing
growth in its iron ore division, as well as our
increased commitment to Brazil,” said chief executive Felix

In the latest deal, ENRC agreed to buy 100 percent of
Mineracao Minas Bahia SA (MIBA) and 51 percent of Mineracao
Peixe Bravo SA.

It bought the assets from various entities including the
Couri family and Steel do Brasil Participa