Brazilian mining company Vale has confirmed the acquisition of the remaining 50% stake in the Baovale joint venture (JV), previously held by its Chinese partner Baoshan Iron & Steel (Baosteel), reported Reuters.

The Baovale JV was formed in 2001, with Vale and Baosteel collaborating to operate the Agua Limpa mine.

Vale had a purchase option in place, which allowed for the potential acquisition of Baosteel's stake.

Vale notified Baosteel last year of its intention to exercise the purchase option. The transaction has been signed, although the financial terms have not been disclosed.

This latest move grants Vale full ownership of the Agua Limpa iron ore project, which is part of the Minas Centrais mining complex in Minas Gerais state, Brazil.

The complex also includes the Brucutu mine and Apolo project.

The completion of the deal is pending approval from Brazil's antitrust body CADE.

Valor Economico, a media outlet, reported that Vale had assigned a value of 135m reais ($23.4m) for the 50% stake in the third quarter of 2024 (Q3 2024).

Vale reported the highest annual iron ore production since 2018, despite a decrease in its Q4 output due to a strategic focus on higher-margin products.

Vale's iron ore production in 2024 neared 328 million tonnes (mt), a 2% rise from the year before. The company has projected its iron ore production for 2025 to be in the range of 325mt–335mt.

In December 2024, Vale initiated commissioning of the Capanema Maximization Project in Minas Gerais, which is expected to increase its iron ore production capacity by around 15 million tonnes per year (mtpa).

This project, part of the Mariana Operational Complex, is set to help Vale reach its target iron ore production of 340mtpa–360mtpa by 2026.