UPDATE 1-Brazil's MMX in talks with Mubadala, Trafigura to sell iron port
(Adds significance of potential deal to MMX and Batista, updates prices)
RIO DE JANEIRO, Sept 10 (Reuters) - Brazilian tycoon Eike Batista is in talks to cede control of mining company MMX Mineração e Metálicos SA's iron ore port near Rio de Janeiro, according to a securities filing on Tuesday.
The talks are another step toward easing the cash and debt problems that have hobbled Batista's once high-flying EBX Group, whose value has collapsed over the past year because of missed production and profit targets.
MMX has agreed to exclusive talks with Dutch trading, energy, mining and logistics company Trafigura Beheer BV and Abu Dhabi sovereign wealth fund Mubadala Development Co, the filing said. The companies would buy an estimated $400 million of new stock to finance the completion of MMX's Sudeste Port and iron ore terminal west of Rio de Janeiro.
In exchange, Trafigura and Mubadala will take over 65 percent of the port. Under the proposed agreement, expected to be worked out over the next four weeks, Trafigura and Mubadala will also assume the bank debts of MMX's iron ore mining unit MMX Sudeste Mineração SA.
Without new investment, MMX and other EBX Group companies could run out of cash in coming months, leaving them unable to pay debts and complete major infrastructure projects such as mines, ports and oil fields.
On Aug. 28 Batista agreed to give up control of port operator LLX Logistica SA in exchange for a $1.3 billion new investment in the company by Washington, D.C.-based investment fund EIG Global Energy Partners.
MMX shares fell 0.88 percent on Tuesday to 2.26 reais in Sao Paulo trading.
Repeated project delays and lower than expected production have caused the value of Batista's energy, oil, mining, electricity, port and shipbuilding empire, once worth more than $60 billion, to nearly evaporate in the last year.
China's Wuhan Iron and Steel Co, also known as Wisco, and Korea's SK Networks, a unit of SK Holdings Co own minority stakes in MMX.
(Reporting by Jeb Blount; Editing by Paulo Prada, Maureen Bavdek and Chris Reese)