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Magnesita Share Jumpson New Graphite Plant License

Shares gained 2,8 % to BRL 7,74 at the close of trading in Sao Paulo. The benchmark Bovespa index added 0,2 %. Magnesita said that the plant, which is located in the Brazilian state of Minas Gerais, will produce as much as 40000 t/a of graphite. Marcos Assumpcao and Andre Pinheiro, analysts at investment bank Itau BBA, wrote that “The graphite market is expected to remain tight over the next few years, given the strong demand potential and limited capacity additions.“ The analysts estimate the project can generate as much as BRL 300 million for Magnesita, which is about 15 % of the company’s market value. Magnesita gained 34 % in 2012, while the Bovespa rose 9,4 % during the same period. (9/2012)

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