Brazil’s mining giant Vale SA (US:VALE) (BR:VALE3) is in talks to partner with another company to operate a reorganized, $20 billion, Canada-headquartered base metals business and expects to close a deal in 2023’s first half.
Reuters quoted Vale Chief Financial Officer Gustavo Pimenta on Thursday saying, “we will change the way we manage base metals. We are looking to bring people with the capability to advise the board on investment decisions,” Pimenta said in the report.
The executive told Reuters Vale would sell 10% of its base metals unit and retain control with its remaining 90% stake in the firm that will manage its nickel and copper projects in Brazil, Canada, and Indonesia. Pimenta didn’t say what price Vale expected for the 10% stake.
Vale called its base metals business “one of the world’s largest producers of high-quality nickel and an important producer of copper and responsibly sourced cobalt.” It’s raising capital as it builds its capacity to supply commodities to the North American Electric vehicle market.
Last month the company signed a term sheet to supply General Motors (US:GM) nickel sulfate from its proposed Bécancour, Québec plant, and said it “highlights Vale’s uniquely strategic position to be the supplier of choice to the EV industry.”
GM said in the past it will be able to build 1 million EVs in North America by 2025 and has signed agreements with at least 20 battery materials companies, including Livent (US:LTHM) and Glencore GB:GLEN, to supply those vehicles.
Vale is also a favorite among subscribers who link their brokerage accounts to Fintel. It recently rose 17 positions to 64 on Fintel’s list of most widely held subscriber shares.
This article originally appeared on Fintel
Top Gaining Stocks
Top Losing Stocks