An increasing number of Chinese firms are looking to build their own mining operations in Brazil. Up until recently, Chinese firms had only been involved in JVs and partnerships with local companies. The increase in China’s foreign exchange reserves prompted companies to look into local regulations, taxes and environmental licensing processes in order to begin new projects as opposed to buying existing operations. International assets will ensure mineral and food supply to counteract the imbalance in China’s foreign exchange reserves. China’s Wuhan Iron and Steel (Wisco) acquired a 21.5% stake in Brazilian iron ore miner MMX in 2010 for USD 422 million and MMX has agreed to sell 50% of the company’s output from their southeast mine in Brazil. Iron ore shipments will be 17Mt/y once the system is fully underway. ECE acquired Brazilian iron ore producer Itaminas for USD 1.2 billion. Their mine in Sarzedo has reserves of 1.3Bt, with 3Mt/y of iron ore produced. This could be increased 25Mt/y. China currently extracts 350Mt/y of iron ore but consumes 1.3Bt/y of iron ore; they absorbed 56.4% of Brazil’s iron ore production in 2009.