SAO PAULO (Reuters) – Vale said on Wednesday it had hired advisers to evaluate alternatives to create long-term value for its shareholders.
The statement came after news broke that the company was in talks to sell a stake in its base metals business.
Vale’s statement does not explicitly mention the issue, but a Financial Times report on Wednesday said Vale had engaged Goldman Sachs to investigate a potential sale transaction of 10% to 15% of its base metals unit, which could add up to $2.5 billion.
Vale added that no decision has been made regarding any transaction.
Last month, the mining giant announced that its board had approved a reorganization of base metals operations in Brazil.
The copper assets will be transferred to Salobo Metais, while the nickel assets will be transferred to a new company to be incorporated in Brazil.
At the time, the mining company said there were no deliberations on new transactions involving the base metals sector.
In the past, Vale has even considered the possibility of a “spin off” and IPO of the segment, as a way to add value to the business.
The new reorganization plans come against a backdrop of growing demand for nickel and copper, metals essential to the global energy transition.
(By Leticia Fucuchima)
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