Mubadala to sell Brazilian port and mining assets

Porto Sudeste

Abu Dhabi’s Mubadala Capital has commenced work on selling Porto Sudeste, a Brazilian private port terminal.

The port is co-owned with Singapore-based commodities trader Trafigura.

Describing Porto Sudeste as a “mature” asset, Leonardo Yamamoto, executive director of Mubadala Capital Brazil, told Reuters that the company’s role is “no longer very relevant”.

Mubadala Capital and Trafigura acquired Porto Sudeste in early 2014.

Additionally, Yamamoto said the UAE company may consider selling its iron-ore mining project, Mineracao Morro do Ipe.

The move could offer investors an integrated operation by bundling the port and the mining asset, he said.

However, no precise time frame was given for the sale.

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Mineracao Morro do Ipe produces around 3.5 million tonnes of iron ore per year, the report said, adding an investment of 1.3 billion reais ($230 million) will expand total production to about nine million tonnes annually.

In August, Mubadala Capital made early-stage investments into three US biotech startups, taking advantage of a broader decline in company valuations to buy into the fast-growing sector.

Mubadala Capital launched in 2011 with a remit to invest primarily in private equity and public markets in North America and Europe. In 2017 it became one of the first sovereign wealth funds to manage the money of third-party investors.