Recently, Vale reached an agreement with Anglo American Group, which will acquire 15% ownership of Anglo American Group and establish a partnership with it. Anglo American currently owns the resources of the Minas-Rio integrated operating area and the Serrada Serpentina ore body (formerly Vale) in Brazil. Anglo American will continue to control, manage and operate the Minas-Rio integrated operating area, including any future expansion plans.
Vale CEO Eduardo Bartolomeo said: “As our customers accelerate the transition to lower-carbon steel production models, we are delighted to be working with Anglo American to meet the growing demand for high-quality iron ore. Growing demand. The Minas-Rio Integrated Operations Area is a Tier 1 asset that will generate significant synergies with the Serpentina Ridge ore body and Vale’s logistics facilities. We believe this partnership will Unlocking significant value for all our stakeholders. We plan to allocate our share of high-quality pellet fines in this operating area to a pellet mill located in Brazil and, in the future, to the production of iron ore briquettes. Mega Hubs’ (MegaHubs Industrialized Comprehensive Operation Zone).”
Duncan Wanblad, chief executive of Anglo American, said: “It is very exciting to partner with Vale to secure such a large and high-quality high-grade iron ore resource near the Minas-Rio integrated operating area. Rare. Especially considering the physical synergies generated by our mining and processing infrastructure, we will create a single, optimized operating area with the option to use Vale’s rail and port logistics facilities. Serbantina The scale and quality of the Ridge ore body will deliver significant value, including scaling up the production of high-quality pellet concentrates for our customers in the steelmaking industry who will focus on carbon reduction from their own processes over the coming decades. Minas -DRI (Direct Reduced Iron) grade products from the Rio Integrated Operations Zone will be sold into the most attractive growth areas in the industry today.”
It is reported that according to the terms agreed by the two parties, Vale will provide Anglo American with Serpentina Ridge high-grade iron ore resources and US$157.5 million in supplementary cash, which will also depend on changes in net debt and working capital on the delivery date. . If the average benchmark price of iron ore remains above US$100/ton or below US$80/ton for four consecutive years, Vale will pay Anglo American or Anglo American will pay Vale a purchase price adjustment, and the purchase price adjustment will be The formula that conforms to the agreement must not exceed a certain upper limit. Completion of the transaction is subject to routine approvals from both companies and regulatory authorities, and is expected to be completed in the fourth quarter of 2024.
After the completion of this transaction, Vale will obtain a proportional share of the output of the Minas-Rio integrated operating area. In addition, should events occur related to the future expansion of the Minas-Rio Integrated Operating Area, including obtaining environmental approval for the expansion following the completion of the Pre-Feasibility Study (PFS) and Feasibility Study (FS), Vale will also have the option to Cash acquisition of an additional 15% stake in the expanded Minas-Rio integrated operating area at a price calculated based on Vale’s fair value at the time of exercise of the option.
Information station
Minas-Rio is a comprehensive iron ore operating area with a nameplate production capacity of high-grade pellet concentrate of 26.5 million tons per year, with the potential to expand to 31 million tons per year under current configurations. The operating area is located in the Brazilian state of Minas Gerais and includes mines, plants, geotechnical engineering and a 529-kilometer-long pipeline connecting the plant to the filter press plant in Porto Aszú, state of Rio de Janeiro, Brazil. The iron ore production of the Minas-Rio integrated operating area in 2023 will be 24 million tons, with a total EBITDA (earnings before interest, taxes, depreciation and amortization) of US$1.4 billion. The Serpentina Ridge ore body is adjacent to the Minas-Rio Integrated Operations Area and has an estimated resource volume of 4.3 billion tons. The combination of the two resources will provide Vale with considerable expansion opportunities and the potential to double production, which will be assessed by Anglo American and Vale under the terms of the deal.
The expanded Minas-Rio integrated operating area has the option of using the nearby Vale-owned railway and the port of Tubaräo to transport increased iron ore production as a second link to Anglo American’s Aso port facility. Pipeline alternatives. Vale said all feasible logistics solutions will be considered and evaluated during the pre-feasibility study phase. The existing Minas-Rio pipeline starts in the Minas-Rio Integrated Operations Area and crosses the Vale rail network downstream, allowing a shorter second pipeline to connect Victoria to the port of Tubarão. -Minas (Vitória-Minas) Railway. The transaction does not include or affect Anglo American’s 50% interest in the Aso Port iron ore export facility.