[ferro-alloys.com]Brazilian integrated steelmaker CSN has confirmed contracting Citibank as a financial adviser to assess strategic options for its CSN Mineracao iron ore mining unit, a move that is part of its debt reduction initiative.

"At the moment, any scenario elaboration on the outcome of this process is premature, and there is no fact that merits disclosure to the market under the terms of the legislation in force," CSN said late Thursday. Its comments came being questioned by Brazil's Securities and Exchange Commission about a published report in local newspaper Valor Economico stating that the company hired Citibank to assess options for its iron ore operations, estimated at more than $1 billion.

"The Company clarifies that it has been informing the market about its debt reduction plan in its teleconferences of disclosure of results," CSN said. "As already informed, the Company evaluates several alternatives, which include, in addition, the anticipated sale of iron ore through a streaming structure."

A CSN spokesman declined comment Friday, instead referring to the company's statement.

CSN's ore shipments in 2018 reached 34.78 million mt, up 7% year on year. Of this, 29.59 million mt was for exports, while the remaining 5.18 million mt was for the company's own usage. CSN's output was 27.87 million mt, down 7% year on year.

At the end of February, CSN signed a long-term deal with Swiss trader Glencore. The transaction involves CSN Mineracao receiving an upfront payment of $500 million in return for 22 million mt of iron ore over five years.

(S&P Global Platts)

• [Editor:王可]