MMX also reported that it has concluded the purchase of 100% of the shares of AVG Mineracao S.A., for US$224 million, following an MMX-AVG shareholders agreement announced on July 5, 2007. MMX said the first installment of the purchase price, in the amount of $44 million, has been paid and the remaining four installments of $45 million each will be paid on August 30 of the next four years.

MMX said it has determined that AVG’s production capacity could be increased from 2.3 million mt/y to 5.8 million mt/y, as a result of technical and due diligence studies; and that it believes AVG also could increase overall efficiency and productivity through improvements in AVG’s operational processes, replacement of aging equipment, and implementation of maintenance procedures and routines. MMX’s management approved a 2008–2009 investment plan for AVG of $32 million, of which $12 million is earmarked for current operations and $20 million for expansion. MMX said it plans to increase investment in AVG to phase-in an increase in production capacity that could exceed 5.8 million mt/y, and is conducting engineering studies to support the this expansion.

Following that announcement, however, in mid-January Reuters reported that Anglo American Plc had begun negotiations with MMX to buy control of two of its iron ore projects for about $5.5 billion. The transaction would help boost Anglo’s annual output of iron ore to 150 million mt by 2017, up from 31.1 million mt in 2006. Anglo said it expected to reach an agreement with Eike Batista, the majority shareholder of MMX Mineracao, to buy his 63.6% stake in a new company demerging from the group. The demerged company will own MMX's 51% interest in the Minas-Rio iron project and 70% interest in the Amapá iron ore project. The deal would give Anglo full ownership of the Minas-Rio project after it paid $1.15 billion last year for a 49% stake.