Brazilian miner Vale SA said on Thursday it had entered into two separate agreements to sell a 13% stake in its nickel and copper business for $3.4 billion.
As part of the deal, a joint venture between the Saudi Arabian Mining Company (Ma'aden) and the Saudi Arabian Public Investment Fund (PIF) will acquire 10% of Vale's non-ferrous metals business, while U.S. investment company Engine No. get 3%.
“Through our high-quality portfolio, we are uniquely positioned to meet the growing demand for sustainable metals needed for the global energy transition,” said Vale CEO Eduardo Bartolomeo.
Vale's core business is the extraction and sale of iron ore, but its non-ferrous division also produces copper and nickel from mines in Brazil, Canada and Indonesia.
The deal is part of Vale's strategy to improve the management of nickel and copper assets, given expectations of a surge in demand for metals in the electric vehicle market.