Brazilian mining company Vale announced that it had reached two separate agreements to sell 13 percent of its base metals business for $3.4 billion, with the aim of boosting its copper and nickel production.
Under the two agreements, a joint venture between the Saudi Arabian Mining Company (Maaden) and the Public Investment Fund will acquire 10 percent of the base metals unit in Valley, while the American investment company, Engine No. 1, will acquire 3 percent, according to Reuters.
The company stated that the transaction, which will be completed in cash and is expected to be completed by the first quarter of 2024, makes the value of the basic metals unit of the company at $ 26 billion. Vale’s market capitalization on the Brazilian stock exchange is estimated at $67.4 billion, based on Thursday’s closing price.
“Our high-quality portfolio makes us uniquely positioned to meet the growing demand for green minerals that are essential in the global energy transition,” Vale CEO Eduardo Bartolomeo said in a statement.
Separately on Thursday, the miner’s second-quarter profit fell 78.2% year-on-year, pressured by lower iron ore prices.