Vale divests Base Metals stake for $3.4 billion
Vale has divested a 13% stake in its Vale Base Metals Limited (VBM) unit to Manara Minerals, a joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund, as well as investment firm Engine No. 1. The Brazilian miner will earn a total of $3.4 billion on the sale.
Manara Minerals will secure a 10% stake in VBM, with Engine No. 1 taking 3%. The firms will invest under the same economic terms in VBM, at an implied enterprise value of $26 billion, Vale says.
This strategic partnership will fast-track VBM’s expected $25-30 billion capital programme over the next decade, says Vale. It will help drive a significant potential increase in VBM’s production from about 350,000 tonnes/year to 900,000 t/y in copper, and 175,000 t/y to over 300,000 t/y in nickel.
The closing is expected to occur by the first quarter next year, subject to conditions precedent, including the approval of the relevant regulatory authorities.
“We see these strategic investments as a major milestone in our path to accelerate accretive growth in our Energy Transition Metals business platform, creating significant long-term value to all of our stakeholders,” Vale chief executive Eduardo Bartolomeo says in a note sent to Kallanish. "With our high-quality portfolio, we are uniquely positioned to meet the growing demand for green metals essential for the global energy transition, while remaining committed to strong social and environmental practices and sustainable mining."
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