Anglo American is gaining control of two Brazilian iron ore mines in a $5.5 billion (£2.8 billion) deal that could tighten corporate control over a key industrial metal.

Eike Batista, a Brazilian billionaire, is selling his interests in the Minas-Rio and Amapá iron ore projects in a complex buyout that could give Anglo between 10 per cent and 12 per cent of trade in the metal within a decade.

MMX Mineração e Metálicos, which is controlled by Mr Batista, will hive down its interest in the two mines into a new company that in turn will be acquired by Anglo for $5.5 billion. The deal will give Anglo sole ownership of Minas-Rio, in which it already has 49percent, and 70 per cent of the Amapá project and 49 per cent of the Port of Acu, an export terminal.

The price of iron ore has soared because of demand from Asia, notably China, where steel firms have protested the mooted merger of BHP Billiton and Rio Tinto. Analysts at Macquarie, the Australian investment bank, expect a 50 per cent rise in the price this year. Cynthia Carrol, the chief executive of Anglo, said that the Brazilian projects would raise Anglo's share of the seaborne iron ore market to 150million tonnes a year.

Steelmakers are on tenterhooks awaiting a decision by BHP whether to bid for Rio, which would take their combined share to 30 per cent. A further third is controlled by CVRD, of Brazil. The UK Takeover Panel told BHP it must make an offer by February 6. Steelmakers in Europe, Japan and China have objected to the plans.

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