Russia-Ukraine war could trigger global recession, warns former Vale director
The short-term scenario is good for commodities, but in the medium term, a correction will be necessary, said Jose Carlos Martins.
The short-term scenario is good for commodities, but in the medium term, a correction will be necessary, said Jose Carlos Martins.
The plant will use technology that reduces the carbon footprint of traditional steelmaking production processes.
The assets, worth about $1.2 billion, include Mineracao Corumbaense, Mineracao Mato Grosso, International Iron Company and Transbarge Navegacion ventures.
The companies, which produce iron ore and manganese ore, accounted for $110 million in adjusted EBITDA in 2021.
The deal is one of several the electric vehicles giant has forged over the last year to secure supply of battery metals.
The collapse of a tailings dam at Vale's Corrego do Feijao mine in Brumadinho released a mudflow that killed 270 people in January 2019.
The deal came after more than two years of talks, Vale said in a securities filing.
The royalty relates to certain properties at the Valentine project initially granted to Reid Newfoundland Company Ltd. in the early part of the last century.
Samarco, a joint venture between Vale and BHP, is considering making adjustments to the plan but not major changes.
In the heady days of the 2000s commodities supercycle, Vale made a $17 billion bet on a metal used mainly to make stainless steel.