Save
Print[Ferro-Alloys.com]
Vale to sell 13% stake in base metals unit for $3.4 billion
Vale (NYSE: VALE) has reached two separate agreements to sell a total 13% stake in its transition metals business for $3.4 billion, aiming to boost its copper and nickel output. The deals would value the company’s base metals unit, Vale Base Metals (VBM), at an enterprise value of $26 billion, it said.
Under the deals, Manara Minerals, a joint venture formed by Saudi Arabian Mining Co (Ma’aden) and the country’s Public Investment Fund (PIF) will acquire 10% of Vale’s base metal unit, while US investment firm Engine No. 1 will acquire 3%. The closing is expected to occur by the first quarter of 2024.
The sale is part of Vale’s strategy the improve the management of nickel and copper assets, given expectations for soaring demand for the metals from the electric vehicle market, the company said, adding that VBM is expected to invest $25-30 billion in new projects across Brazil, Canada and Indonesia over the next decade.
The partnership is expected to fast-track VBM’s capital program over the next decade and help drive a significant potential increase in VBM’s production from about 350,000 t/y to 900,000 t/y in copper and from roughly 175,000 t/y to more than 300,000 t/y in nickel, the company said.
Source: MINING.COM
Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Without permission, any unit and individual shall not copy or reprint!
- [Editor:邢亚敏]
Daily News
Research
Magazine
Company Database
Customized Database
Conferences
Advertisement
Trade
Tell Us What You Think