MMX CEO Gonzalez Resigns as Brazilian Iron Ore Miner Tries to Stay Afloat

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The chief executive officer of Brazilian mining company MMX Mineração e Metálicos SA, controlled by businessman Eike Batista, stepped down from his post as the company faces a cash squeeze and is trying to find partners or sell assets to stay afloat. Batista was once Brazil’s richest man before losing most of his fortune last year after becoming the target of a federal police probe for financial crimes.

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Carlos Roberto de Castro Gonzalez resigned as CEO and investor relations officer, the company said in a statement late Thursday. Mr. Gonzalez will be replaced by Ricardo Guimarares, a director at MMX. MMX didn’t provide further details.

MMX, which was created in 2005, posted a net loss of 69.2 million reais in the first quarter of this year, following a bigger loss of 353.1 million reais in the last three months of 2013. The company says it has been hurt by the fall of iron ore prices because of weak demand from Chinese steel mills.

Rising 2.3 percent to close at $440.00 per metric ton, the steel billet cash price experienced the biggest change on the LME for Thursday, August 28. Also on the LME, the steel billet 3-month price rose 2.3 percent to $445.00 per metric ton.

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Chinese steel prices were flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($136.32) and a low price of CNY 830.00 ($134.70) per dry metric ton. For the fifth consecutive day, the price of Chinese HRC held flat at CNY 3,380 ($548.53) per metric ton. The price of Chinese coking coal saw essentially no change for the fifth day in a row, remaining around CNY 1,390 ($225.58) per metric ton.

For the fifth day in a row, the US HRC futures contract 3-month price remained essentially flat at $645.00 per short ton. The US HRC futures contract spot price continues hovering around $675.00 per short ton for the fifth day in a row.

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