São Paulo, Brazil, February 20th, 2019 – COMPANHIA SIDERÚRGICA NACIONAL (“Company” or “CSN”) hereby informs its shareholders and the market in general that its controlled company, CSN Mineração S.A. (“CSN Mineração”), has concluded negotiations for the supply of iron ore to Swiss trader Glencore International AG (“Glencore”).
The transaction involves a pre-payment to CSN Mineração in the amount of US$ 500,000,000.00 related to an iron ore supply contract of approximately 22 million tons over 5 years. The disbursement will occur once certain precedent conditions have been met, which are customary for this type of transaction.
The Transaction is part of CSN’s deleveraging plan, as already disclosed by the Company. Through this, we forecast that the net debt /EBITDA pro forma of CSN will be reduced to 4.1x, considering today’s exchange rate.
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CSN is a highly integrated company, with steel, mining, cement, logistics and energy businesses. The Company operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a diversified range of high value-added steel products. Thanks to its integrated production system and exemplary management, CSN’s production costs are among the lowest in the global steel sector.