Brazilian miner and iron ore producer Vale said it is in “advanced talks” to sell undisclosed iron ore and manganese assets at its Midwest System.
Vale said its Midwest System produced 2.7 million mt of iron ore and 200,000 mt of manganese in full-year 2021. The Midwest business reported $110 million in adjusted EBITDA, Vale said.
Vale said the asset sale is in line with its strategy to disinvest from non-core assets. Analysts at BTG Pactual said Vale should benefit from appreciated iron ore prices.
Fernando Mollo, analyst at BTG Pactual, said both China’s increasing steel output and Russia’s invasion of Ukraine should sustain iron ore prices.