Brazilian miner Vale has concluded the sale of a 10% stake in Vale Base Metals (VBM) to Manara Minerals for $2.5bn (12.99bn reais).
The transaction was completed after the green light from regulatory authorities.
In July last year, the Brazilian miner entered two agreements to offload a 13% stake in VBM for a total consideration of $3.4bn.
The first deal was signed with Manara Minerals, which agreed to acquire a 10% stake in VBM, and the other deal was signed with the US investment firm Engine No. 1, which agreed to buy a 3% interest.
VBM chair Mark Cutifani said: “We are pleased to officially welcome Manara Minerals as a strategic partner in Vale Base Metals as we look to unlock operational and financial value from our high-quality portfolio of assets and position ourselves as the leading energy transition materials company, and we look forward to potential future cooperation with Engine No. 1.”
The investment by Manara Minerals in VBM is expected to catalyse the latter’s growth, with significant investments planned over the next decade.
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By GlobalDataVBM aims to substantially increase its copper and nickel production, targeting a rise from 350 kilotonnes (kt) per year to 900kt/year for copper and from 175kt/year to 300kt/year for nickel.
These expansions are planned across Brazil, Canada and Indonesia.
Vale also disclosed that it has been in discussions with investment company Engine No. 1. Although the two parties have decided not to proceed with the terms agreed earlier, they remain open to exploring future collaborations.
Vale CEO Eduardo Bartolomeo said: “We are proud to close a major milestone in our Energy Transition Metals platform, following a successful business carve-out.
“This strategic investment by Manara reflects the confidence in our unique mineral endowment and ability to deliver metals needed for the energy transition. Manara brings mining experience and is a key strategic partner with a shared long-term view.”