The Brazilian competition authority CADE has approved the acquisition of 15 percent equity in the Minas-Rio iron ore operations of UK-based mining giant Anglo American in Brazil by local iron ore miner Vale, without any restrictions, for $157.5 million, having concluded that the deal does not pose any significant competition concerns. Also, as part of the deal, Anglo American will integrate Vale’s Serra da Serpentina high quality iron ore resources into the Minas-Rio mine.
Anglo American will continue to control, manage and operate the Minas-Rio mine, including any further expansions, while Vale will have an option to offtake iron ore proportional to its equity interest from the Minas-Rio, and, potentially, in the future, when the Serra da Serpentina mine becomes operational.
The transaction is expected to be completed in the fourth quarter of this year.
Minas-Rio is an integrated iron ore operation with a high-grade pellet feed capacity of 26.5 million mt per year, with the potential to expand to up to 31 million mt per year. The operation comprises mine, plant, geotechnical, and supporting structures in Minas Gerais and a 529-kilometer pipeline connecting the plant to the filtering plant at Açu Port in Rio de Janeiro. On the other hand, the Serra da Serpentina deposit is adjacent to the Minas-Rio operation, with resources estimated at 4.3 billion mt.
