Vale looks to close deal with partner for base metals in H1
NEW YORK - Brazilian mining company Vale is in advanced talks with possible partners for its new base metals investment vehicle and looks to have a deal concluded during the first half of 2023, CFO Gustavo Pimenta said on Wednesday.
Pimenta told investors during a meeting at the New York Stock Exchange that Brazil's Vale will sell only 10% of the new base metals unit to the chosen partner and will retain the remaining 90% so as to have control over the decisions for the venture.
The new company, which will be headquartered outside of Brazil - with Canada as a strong possibility - will have an estimated capex of $20-billion and will manage the nickel and copper projects in Brazil, Canada and Indonesia.
Pimenta said the key quality Vale is looking when deciding for the partner is expertise.
"We will change the way we manage base metals. We are looking to bring people with the capability to advise the board on investment decisions," he told reporters after the meeting, adding that the objective is to accelerate plans in the area.
Demand for metals like nickel and lithium is seen growing sharply in coming years due to expected production growth of electric vehicles (EV). Those are the main metals used in the batteries.
Vale is particularly looking to be well placed to supply the EV growth in North America.
Pimenta did not give financial details of the deal, or any comment on how much the 10% share would cost. He said more information on the modeling of the business would be available to the market in the first quarter of 2023.
Demand for copper is also expected to rise globally due to the energy transition towards more electrification.
Comments
Research Reports
Projects
Latest Multimedia
Showroom
SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...
VISIT SHOWROOM
ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
