Vale confirms 30% stake in Ligga iron ore mine via $190 mln deal

• Vale secures long-term access to Ligga’s high-quality iron ore output
• Deal secures long-term access to additional Carajas iron ore

The notice followed queries from Brazil’s securities regulator CVM and stock exchange B3 over why the transaction had not been disclosed to investors after a local media outlet reported the investment.

In response, Vale argued in the notice that the acquisition did not constitute a material fact requiring disclosure, given the nature of the transaction. As for the deal itself, the company stated that it includes a long-term agreement under which Vale will exclusively purchase 100% of the sinter feed iron ore produced by Ligga.

The transaction remains subject to customary corporate and regulatory approvals, according to Vale.

Ligga operates the Ferro Sul mine in the Carajas region of Para state, northern Brazil, which currently has a capacity of approximately 2 million tonnes/year of iron ore. This capacity is designed to be expanded to 8 million t/y, with the expansion scheduled to commence operations in June 2028. The project will include a new beneficiation plant, infrastructure works and a rail solution, according to the notice.

Vale will secure long-term access to additional volumes of high-quality iron ore under the transaction, increasing the flexibility of its Northern System portfolio with lower capital intensity and integration into existing logistics infrastructure, the company said.

Production from the Ferro Sul mine, for example, will be transported along the Carajas Railroad to the Ponta da Madeira Maritime Terminal in Sao Luis, Maranhao, northeastern Brazil.

Vale, however, stated that it does not confirm estimates attributed to third parties in the media, including Ligga’s mineral reserve volumes and any additional expansions, as well as the exploration of other types of ore or future production of pellet feed.

The expansion project was reportedly to involve about $97 million in investment, while Ligga’s iron ore reserves were estimated at 1.5 billion tonnes, Mysteel Global noted.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.