Vale announced that on April 6, the company had entered into an agreement with J & F Mining Co., Ltd. (the “buyer”) controlled by J & F for the sale of minera çã ocorumbaense reunidas A.、MineraçãoMatoGrossoS. A. , internationalironcompany, Inc. and transbargenavegaci ó nsociedadan ó NIMA signed a binding agreement on all the shares issued by the company. The above company holds iron ore, manganese ore and logistics assets of China western system. The agreement stipulates that the buyer shall bear all the rights and obligations of “take or pay” logistics contracts before the consent of the counterparty. According to the agreed terms, the transaction is valued at approximately US $1.2 billion, with a group of assets contributing US $110 million to Vale’s adjusted EBITDA in 2021. After the transaction, Vale will receive about US $150 million and transfer the “take or pay” logistics contract obligations and other obligations related to the transaction assets to the buyer with the consent of the counterparty.
The buyer will also continue to operate on the premise of retaining all employees. The completion of the transaction depends on the satisfaction of preconditions, including the approval of the Brazilian Administrative Commission for economic protection (Cade), the Brazilian national waterway transport agency (antaq), the Brazilian National Defense Commission (CDN) and other regulatory authorities.
In 2021, China West system produced 2.7 million tons of iron ore and 200000 tons of manganese ore. The sale of assets of China West system is guided by strict capital allocation, which is in line with Vale’s strategy of simplifying investment portfolio and focusing on main business and growth opportunities.