The deals take the enterprise value of Vale’s energy transition metals business at $26bn. Credit: noranissaanditha from Pixabay.

Brazilian miner Vale has signed two separate agreements to divest a 13% stake in its base metals business, Vale Base Metals (VBM), for a total consideration of $3.4bn.

The sale is part of Vale’s effort to boost its copper and nickel output to meet the surging demand for the metals from the electric vehicle (EV) market, reported Reuters.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Manara Minerals, a joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund, will acquire a 10% stake in Vale’s base metal unit while US investment firm Engine No. 1 will acquire a 3% interest.

The deals take the enterprise value of Vale’s energy transition metals business to $26bn.

Subject to precedent conditions, including the approval of the relevant regulatory authorities, the transactions are planned for completion by Q1 2024.

In a press statement, Vale said: “This strategic partnership will fast-track VBM’s expected $25bn-$30bn capital programme over the next decade and help drive a significant potential increase in VBM’s production from about 350 kilotonnes per annum (ktpa) to 900ktpa in copper and from roughly 175ktpa to more than 300ktpa in nickel.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Manara Minerals executive director and Ma’aden CEO Robert Wilt said the investment into VBM marks the company’s first major investment into the global mining sector.

In a separate announcement, Vale has registered a net income from continuing operations attributable to shareholders of $892m in the second (Q2) of 2022, a drop by 78.2% from $4.09bn in the same period a year ago, due to drop in prices.

Net operating revenues for the quarter declined 13.3% to $9.6bn from $11.1bn during the same quarter of 2022.

Proforma adjusted EBITDA from continuing operations dropped to $4.14bn from $5.53bn.