Topics : Contracts, Joint Ventures
RIO DE JANEIRO, May 2, 2024 /PRNewswire/ — Following approval from relevant regulatory authorities, Vale SA (Vale or the Company) is pleased to announce the completion of its approximately $2.5 billion sale of Manara Minerals, a joint venture between Ma’ aden and the Public Investment Fund of Saudi Arabia, under which Manara Minerals will acquire a 10% stake in Vale Base Metals Limited (VBM).
This strategic partnership, first announced in July 2023, will accelerate value creation from the set of best-in-class assets and projects that VBM has in its portfolio, enabling VBM to contribute to the global energy transition at a pace faster and on a larger scale in the main strategic mining jurisdictions where it operates. Over the next decade, VBM is expected to invest in new projects in Brazil, Canada and in Indonesia, with a view to a significant increase in copper production from 350kt/year to 900kt/year and nickel production from 175kt/year to 300kt/year.
In July 2023, Vale SA also announced a strategic partnership agreement with Engine No. 1 under which the US-based investment firm would hold a 3% stake in VBM. Following further negotiations in recent months, both parties have decided not to follow through on previously agreed terms, but remain open to future partnerships. Engine No. 1 is a valued partner whose commitment to creating sustainable infrastructure and supply chains is complementary to Vale’s mission as a responsible supplier of essential materials.
We are proud to close an important milestone in our metals platform for the energy transition, following a successful division of the company. This strategic investment by Manara reflects confidence in our unique mineral heritage and our ability to provide the metals needed for the energy transition. Manara brings mining experience and is a key strategic partner who shares a long-term vision, said Eduardo BartolomeoCEO of Vale.
Mark Cutifani, Chairman of VBM, said: We are pleased to officially welcome Manara Minerals as a strategic partner of Vale Base Metals, as we seek to unlock operational and financial value from our portfolio of high quality and position ourselves as a leader in energy transition materials, and we look forward to possible cooperation with Engine No. 1.
Bob Wilt, Vice Chairman of Manara Minerals and CEO of Ma’aden, said: As Manara’s inaugural investment, our partnership with VBM is a strong statement of the company’s ambition and global sourcing mandate. in essential minerals sustainable and diversified economic growth. We will continue to make mining the third pillar of the Saudi economy and look forward to working with VBM at a time when essential minerals have never been more important.
Contact: Media Relations, Vale SA? [email protected]; Vale Base Metals –[email protected]
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