Liputan6.com, Jakarta – Vale, a Brazilian mining company, sold its stake in Vale Base Metals Limited (VBM) or its 13 percent base metals business unit for $3.4 billion, or approximately IDR 51.25 trillion (assuming a exchange rate of 15,075 per US dollar).

Vale sold shares of its base metals business unit to Manara Minerals, a joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund and Engine No.1.

The sale of these shares should help increase production in Vale’s base metals business unit. Quoted on Vale’s website, written on Saturday (7/29/2023), this strategic partnership will accelerate VBM’s investment program which is estimated at $25-30 billion over the next decade.

This strategic partnership also helps generate the potential to significantly increase Vale Base Metals Limited’s production from 350,000 metric tonnes of copper to 900,000 metric tonnes (MT) of copper. In addition, approximately 175,000 tons per year represents more than 300,000 tons of nickel per year.

This program will generate jobs, economic growth, sourcing and supplier opportunities, and socio-economic benefits where VBM operates. Vale’s base metals business unit has mines in Brazil, Canada and Indonesia.

Based in Toronto, Canada, Vale Base Metals is one of the world’s largest producers of nickel, copper, cobalt and platinum. It has operations in Canada, the United Kingdom, Brazil, Japan and Indonesia.

The $3.4 billion sale transaction was paid in cash to VBM and is expected to close in the first quarter of 2024, subject to conditions precedent including approvals and relevant regulatory authorities.