BHP Billiton is reportedly mulling the sale of its stake in Brazil pellets producer Samarco, according to a recent media report from Valor citing a source close to the matter.
Valor said executives of both Vale and BHP Billiton were in talks last year over the future of the joint venture (JV), however, no decision had been made.
SteelOrbis has first reported the rumors in 2016.
The media report said BHP’s participation in Samarco will continue as long as the pellets business “makes sense.”
So far, Samarco hasn’t resumed production, following a halt in November 2015; the production halt was a result of the Mariana disaster, which killed 19 people.
Samarco has struggled to obtain the needed licenses to resume output and was issued a number of fines.
More recently, it managed to win a provisional license and an installing license for its Alegria Sul pit out of the company’s Mariana complex.
Valor said the purchase of BHP’s stake by Vale would make sense for the iron ore producer, as the Brazilian miner already extracts iron ore in a nearby city.
As for BHP Billiton, it would mean to leave its only asset in Brazil.
Neither Vale nor BHP commented the rumors.