Vale is reportedly mulling to buy a stake in Anglo American’s $8.8bn Minas-Rio iron ore project located in the Brazilian state of Minas Gerais.

A deal in this regard will support Vale’s aim to boost its annual production capacity of iron ore to 400 million tonnes, reported Bloomberg News, citing undisclosed sources having information about the matter.

In 2020 itself, preliminary talks had taken place between the parties. However, the talks have not yet advanced enough to be presented to the respective boards of the companies, therefore a deal may not result, sources told the publication.

Vale is planning to acquire a stake of 30-40% in the Minas-Rio iron ore project. The Brazilian mining company may even pursue a controlling stake.

Located in the south-eastern region of Brazil, Minas-Rio is fully owned by Anglo American via its subsidiary, Iron Ore Brazil. Anglo American had bought the iron ore mine from MMX for $4.6bn in 2008.

The fully integrated export iron ore project includes mine, beneficiation plant, a 529km pipeline, and an export facility at the Açu port.

First ore on ship (FOOS) from the Minas-Rio iron ore project was achieved in late 2014.

Earlier this week, Vale signed an agreement with Vulcan Minerals to divest the Moatize coal mine and the Nacala Logistics Corridor in Mozambique for $270m.

The sale is part of an announcement made by Vale earlier this year of its decision to no longer own coal assets and to focus on its core businesses, while becoming a leading low carbon-producing miner.