Vale agrees to sell manganese, iron ore assets to J&F

Brazil’s Vale (NYSE: VALE) has agreed to sell its manganese and iron ore mines in central Brazil, with an enterprise value of about $1.2 billion, to holding company J&F Investimentos, it said in a securities filing on Wednesday.

In addition to the manganese and iron ore mines, the mining giant also agreed to sell logistics assets in the region to J&F, parent company of meat packer and pulp maker Eldorado Brasil.

Vale said last week it was in advanced talks to sell the companies that compose its Center-West system as it looks to focus on core businesses and growth opportunities, but did not reveal the potential buyer. 

The Center-West system, which comprises Mineracao Corumbaense, Mineracao Mato Grosso, International Iron Company and Transbarge Navegacion ventures, produced 2.7 million tonnes of iron ore and 200,000 tonnes of manganese ore in 2021.

That accounted for $110 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), the miner said.

The deal still requires approval from Brazil’s regulatory bodies.

Newspaper Valor Economico first reported the transaction late on Tuesday.

($1 = 4.6740 reais)

(By Tatiana Bautzer and Gabriel Araujo; Editing by Mark Potter and Barbara Lewis)