Brazilian mining company Vale has completed the sale of its 10% stake in Vale Base Metals (VBM) to Manara Minerals for $2.5bn, following approvals from relevant authorities.
Manara is a joint venture between Ma`aden and Saudi Arabia`s Public Investment Fund.
In July last year, the Brazilian miner signed two agreements to offload a total of 13% stake in VBM for a total consideration of $3.4bn.
It has signed the first deal with Manara for a 10% stake in VBM, and the other deal with the US investment firm Engine No. 1 for the remaining 3% interest.
Vale CEO Eduardo Bartolomeo said: “We are proud to close a major milestone in our Energy Transition Metals platform, following a successful business carve-out.
“This strategic investment by Manara reflects the confidence in our unique mineral endowment and in our ability to deliver metals needed for the energy transition. Manara brings mining experience and is a key strategic partner with a shared long-term view.”
Earlier this year, VBM said that it would prioritise the decision on a potential combination of its nickel operations in Canada`s Sudbury basin with those of Swiss mining company Glencore.
The two companies have been involved in talks over a Sudbury tie-up on and off since 2006, which would reduce costs for both companies, with annual savings of more than $500m.
VBM owns five mines, while Glencore owns the Nickel Rim South mine and the Onaping Depth project, which also produces copper and precious metals.
Nickel is an important component in the production of electric vehicle batteries and mining companies have been trying to reduce costs to produce the metal.
VBM chair Mark Cutifani said: “We are pleased to officially welcome Manara Minerals as a strategic partner in Vale Base Metals as we look to unlock operational and financial value from our high-quality portfolio of assets and position ourselves as the leading energy transition materials company, and we look forward to potential future cooperation with Engine No. 1.”
Manara Minerals Vice Chairman and Ma`aden CEO Bob Wilt said: “As the inaugural investment made by Manara, our partnership with VBM is a strong statement of the company`s ambition and mandate to globally source minerals that are vital for sustainable and diversified economic growth.
“We will continue to build mining as the third pillar of the Saudi economy, and we look forward to working with VBM at a time when critical minerals have never been more important.”
