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Vale Obtains Approval to Acquire Corumbá Asset
09/17/2009 - Vale S.A. has obtained the approval of the Brazilian National Defense Council to acquire the Corumbá iron ore mining operations, located in state of Mato Grosso do Sul, Brazil.
Vale S.A. has obtained the approval of the Conselho de Defesa Nacional, the Brazilian National Defense Council, to acquire the Corumbá iron ore mining operations, located in state of Mato Grosso do Sul, Brazil.
Conclusion of the acquisition is still subject to certain conditions, to be fulfilled by Vale and the seller, Rio Tinto Plc and its other entities.
In January 2009, Vale entered into a purchase and sale agreement with Rio Tinto to acquire iron ore and potash assets through an all-cash transaction. The price to be paid for the iron ore assets (mining operation and associated logistics assets, including port and barges) amounts to US$750 million.
The acquisition of the potash assets has already been concluded.
Corumbá produced 2.0 million tonnes of iron ore in 2008. Vale says it is a “world-class asset,” with high iron content and rich in direct reduction lump ores, which are becoming increasingly scarce around the world. The logistics assets enable Corumbá to be 70% self-sufficient in the transportation of iron ore down the Paraguay River.
Corumbá is located near Vale’s Urucum iron ore and manganese operations. The company says there are potential synergies to be exploited, through augmented asset and portfolio flexibility, lower administrative and logistics costs, and rationalization of the use of reserves.
