BHP, Vale Reject Brazil steelmaker CSN's Interest, Say Miner Samarco Is Not for Sale

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Miners Vale SA and BHP Group said in a joint statement on Monday they are not interested in selling their joint venture Samarco, after reports of the interest of Brazilian steelmaker Companhia Siderurgica Nacional (CSN), Reuters reported. "BHP Brasil and Vale say Samarco is not for sale and reaffirm its support for the restructuring plan filed by the employees' unions," the companies said in a joint statement. The statement added the companies are "focused on the mediation hearing in the bankruptcy process" scheduled for Tuesday. CSN is drafting an offer to acquire miner Samarco Mineracao SA, which will be presented by its adviser RK Partners to the bankruptcy court judge overseeing its debt restructuring. RK Partners has reached out to Samarco shareholders Vale and BHP Group, along with unions and financial creditors, the sources said. One of the sources said Vale has already told CSN the company is not interested in selling Samarco. A key problem to reach an agreement is financing Samarco's liabilities related to its 2015 disaster in the city of Mariana. Shareholders, which have committed to pay for damages, may resist any proposal to give up control of operations while keeping that liability. A mediation hearing was scheduled by the judge overseeing Samarco's bankruptcy between two groups presenting competing restructuring proposals, one led by financial creditors and the other by the employees' unions with the support of Vale and BHP. Read more.
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