Vale Completes $2.5 Billion Stake Sale to Manara Minerals, Boosts Energy Transition Strategy

Vale Completes $2.5 Billion Stake Sale to Manara Minerals, Boosts Energy Transition Strategy

Vale S.A. has successfully finalized the sale of a 10% stake in Vale Base Metals Limited (VBM) to Manara Minerals for approximately $2.5 billion. This partnership, forged with the joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund, was first announced in July 2023 and has now received the green light from regulatory authorities.

The collaboration is set to accelerate VBM’s production capabilities significantly, focusing on enhancing output in critical mineral jurisdictions across Brazil, Canada, and Indonesia. With this strategic move, VBM plans to increase its copper production from 350kt/year to 900kt/year and nickel output from 175kt/year to 300kt/year over the next decade. This expansion is aimed at advancing the global energy transition, catering to the increasing demand for sustainable and efficient energy solutions.

In a related development, Vale disclosed that its proposed partnership with U.S.-based investment firm Engine No. 1, initially set to acquire a 3% equity stake in VBM, will not proceed as originally planned. Despite this, both parties remain open to exploring future collaborations, underscoring their mutual commitment to sustainable infrastructure and supply chains.

Eduardo Bartolomeo, CEO of Vale, expressed pride in achieving this significant milestone, highlighting Manara’s strategic investment as a testament to confidence in Vale’s ability to supply critical metals for the energy transition. Mark Cutifani, Chair of VBM, warmly welcomed Manara Minerals to the fold, emphasizing the potential to unlock exceptional operational and financial value from VBM’s portfolio and reinforcing Vale’s position as a frontrunner in energy transition materials. icon

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