Saudi Arabian Mining Co (Ma’aden) and the country’s Public Investment Fund (PIF) announced they will acquire 10% of Vale’s base metal unit through a joint venture, according to a statement.
Brazilian miner Vale said it reached two separate agreements to sell a 13% stake in its base metals business for $3.4 billion, aiming to boost its copper and nickel output.
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 sale is part of Vale’s strategy to unlock more value from its nickel and copper assets, given expectations for soaring demand for the metals from the electric vehicle market.
The deal is to be finalized by the first quarter of 2024, with the enterprise value for Vale’s metal unit estimated at US$26 million.
The Brazilian company’s market capitalization in the stock exchange was $67.4 billion.”With our high-quality portfolio, we are uniquely positioned to meet the growing demand for green metals essential for the global energy transition,” Vale’s CEO Eduardo Bartolomeo said in a statement.
If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.