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Brazilian billionaire mining mogul, Eike Batista has agreed to jointly build an iron ore export port with local steelmaker Usiminas (USIM5.BR), the O Globo newpaper reported Wednesday.

The proposed port is in the Sepetiba area south of Rio de Janeiro.

Batista owns iron company MMX (MMX3M.BR) and logistics provider LLX Logistica SA (LLXL3.BR).

Both Usiminas and MMX wouldn't comment about the newpaper article.

LLX and Usiminas received the go-ahead to build separate ports in the much sought-after Sepetiba area from the Rio de Janeiro State government late January.

Sepetiba is a key outlet for Brazil's high-quality iron ore mines in Minas Gerais. Two nearby existing iron ore terminals are already served by a modern railroad link and deep-water channels capable of accepting large ore carriers.

Two steel companies, Gerdau (GGB) and Companhia Siderurgica Nacional, or CSN (SID), also received permission to build iron ore ports near Sepetiba in January, while three others were rejected.

Batista recently told an analysts' conference he was selling off some of his assets and Asian steel and mining companies had been showing an interest.

Batista made a point of mentioning how iron ore export port sites like his were at a premium, owing particularly to the complexity of environmental licensing.

Apart from LLX's Sepetiba site, the company is also developing a greenfield port at Acu in the extreme north of Rio de Janeiro State, which will be connected to iron ore mines by pipeline. The ore will be washed through the pipeline in pellets from neighboring Minas Gerais State.

-By John Kolodziejski, Dow Jones Newswires; 5521-2586-6086; john.kolodziejski@dowjones.com