Analysts say deal is part of a Vale strategy to grow value of its nickel and copper holdings ahead of electric vehicle demand .
Vale has confirmed it is selling off part of its newly formed Vale Base Metals unit in two separate agreements.
Ten per cent of the company going to Saudi Arabia’s Mining Co (Ma’aden) and the Saudi Public Investment Fund (PIF), and three per cent being sold to U.S. investment firm Engine No. 1. The entire deal is valued at $3.4 billion according to a report from Reuters.
Analysts are saying the deal is part of a larger strategy by Vale Base Metals to grow the value of its nickel and copper holdings in anticipation of the growing demand for battery electric vehicles. Vale Base Metals has significant mining and refining operations in Canada including those in Sudbury.
The cash deal will be subject to numerous legal conditions, including the approval of the relevant regulatory authorities, and it is expected the transactions are planned for completion by Q1 2024. Heading up Vale Base Metals is Mark Cutifani, a well-known and popular global mining executive who once steered Vale’s Sudbury operations.
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