Brazilian miner Vale said on Tuesday it concluded the sale of 10 per cent of Vale Base Metals to Manara Minerals for $2.5bn, according to a securities filing.
Vale and Manara Minerals, a joint venture between Saudi Arabian Mining Company, known as Ma’aden, and Saudi Arabia’s Public Investment Fund, signed last July a binding agreement for the deal.
Vale also said on Tuesday a previous agreement with US-based investment firm Engine No 1, under which Engine would own a 3 per cent equity stake in Vale Base Metals, has not advanced.
“Following further negotiations in recent months, both sides have agreed not to move forward with the previously agreed terms and conditions but remain open to future partnerships”, Vale said about the talks with Engine.
Mosaic to sell stake in Saudi JV to Ma’aden
Fertiliser maker Mosaic Co said on Tuesday that Saudi Arabia’s flagship mining firm Ma’aden would acquire the US-based company’s stake in a phosphate production joint venture by issuing shares worth about $1.5bn.
Ma’aden will issue about 111 million shares to buy the 25 per cent stake Mosaic owns in Ma’aden Wa’ad Al Shamal Phosphate Co, a joint venture between Mosaic, Ma’aden and Saudi Basic Industries.
Mosaic had said in February that a lot of the cash generated from the asset had gone into reducing debt and investing in the joint venture was not at the top of its priority.
The phosphate producer curtailed output after fertiliser prices dropped last year due to lukewarm demand from key markets.
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