May 25, 2022

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Vale (VALE3) sells MS’s iron and manganese mines for R$1 billion, according to website

Vale (VALE3) sells MS iron and manganese mines for R$1 billion, says website
Vale Photo: Bishnu Sarangi / Pixabay

In pursuit of portfolio simplification and focus on the company’s core business and growth opportunities, Yes (VALE3) agreed to sell the iron and manganese mines, located in Mato Grosso do Sul, to J&F Investimentos, for R$1 billion – including debt, Economic value.

The J&F Investimentos is the owner JBS (JBSS3), an animal protein company, and Eldorado Brasil, a cellulose company. With the purchase of the Vale Mines, the Joesley Batista family’s holding company enters the mining sector.

According to Vale, Midwest mining system It produced 2.7 million tons of iron ore and about 200,000 tons of manganese ore in 2021, contributing $110 million to the company’s EBITDA for the year.

With the acquisition, J&F intends to create “JBS Mining‘, the sources reported Economic value. In this sense, the company must start evaluating new acquisitions in order to grow and become a company player relevant in the sector in the coming years.

JBS is currently one of the largest food companies in the world and has been registered Net profit The record in the consolidated year 2021, valued at 20.48 billion Brazilian reais. In terms of revenue, the annual amount was R$350.7 billion.

mining system in midwest valley

Vale Structure in the District Kurumba (MS), where the mines are located, was acquired in 2009 and the value of the negotiation was 750 million US dollars.

The structure includes the Urucum mine, which is located 22 km from Corumbá and has an open exploration pit iron oreas well as an underground mine manganese ore. Another mine in the system is the Santa Cruz mine, which contains several mining fronts.

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Vale also includes Pé da Serra freight yard, Antônio Maria freight yard, Railway yard, Tupacery freight yard, Porto Gregório Curvo, and Granel Química (Ladário) port terminal in this structure.

According to reports from Valley ProductionThe mines in Mato Grosso do Sul are not the most profitable for a mining company. The Midwest system has the lowest volume of iron ore extraction compared to other units:

  • Midwest: 795,000 tons
  • North: 50 million tons
  • Southeast: 18.6 million tons
  • South: 12.9 million tons.

Currently , Yes It employs 1,000 people in the Midwest system and its last major investment in the region was $750 million.