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The federal government has given a green light to the sale of large quantities of high-strength aluminum to a Brazilian mine operator and the owner of another company involved in the production of the metal.
The approval by federal officials and the sale of the high-strength steel to a joint venture between BHP Billiton and Vale SA is part of a larger deal designed to revive the Brazilian mining industry.
Minsters for Industry Jim O’Connor and Michael Gravelle approved last Wednesday an amendment to a federal law that could allow the sale of large amounts of high-strength aluminum, aluminum alloys and other raw materials used in mining to a company owned by a Brazilian iron ore mining company called Vale SA, the biggest owner of iron ore-processing plants in the world.
The sale to the Vale group is scheduled to start this month and could raise $18 billion for BHP Billiton after it is financed by $9 billion in debt financing from the Australian government. As part of the financing, the Australian government agreed to lend BHP Billiton $800 million in exchange for a 20 percent stake in BHP Billiton.
While the federal government has always protected the interests of iron ore miners, Vale has made a big push at home to grow its operations in a
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