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Vale signs agreements to sell 13% interest in Vale Base Metals Limited for US$3.4B

Date Announced

July 27, 2023

Lead Office

Toronto

Value

3.40 Billion USD

On July 27, 2023, Vale announced that it has entered in agreement to sell a 13% interest in Vale Base Metals Limited (VBML) US$3.4 billion.

Pursuant to the agreement with Manara Minerals, a joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund, Manara Minerals will acquire a 10% interest and pursuant to the agreement with investment firm Engine No. 1, such party will acquire a 3% interest in Vunder the same economic terms..

This strategic partnership will fast-track VBM’s expected US$ 25-30 billion capital program over the next decade and help drive a significant potential increase in VBM’s production from about 350kt/year to 900kt/year in copper and from roughly 175kt/year to more than 300kt/year in nickel.

The total consideration of US$3.4 billion will be paid in cash to VBML at closing of the transaction, subject to customary adjustments. The closing is expected to occur by 1Q 2024, subject to customary conditions precedent.

Vale, with global headquarters in Rio de Janeiro, Brazil, is one of the world's largest integrated mining companies.

McCarthy Tétrault is advising Vale with a team led by Eva Bellissimo that included Shea Small, Ainslie Hurd, Roger Taplin, Samantha Pettinato, Peter Quon (Business), Brett Anderson, Jeremy Ho, Colton Dennis, Darren Chung (Tax), Jason Gudofsky, Gideon Kwinter (Competition/Antitrust), and Patrick Pengelly (Labour & Employment).

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