Vale Agrees to Sell Midwest System Mining Assets, Will Receive About $150 Million

By Jeffrey T. Lewis

SAO PAULO--Vale SA said Wednesday it agreed to sell assets in its Midwestern System group of mining operations as part of its plan to simplify its portfolio and focus on boosting production from its most profitable businesses.

The deal has an enterprise value of about $1.2 billion, and Vale will receive about $150 million when the transaction is finished. The buyer is J&F Mineracao Ltda., which is controlled by J&F Investimentos SA.

Vale shares were up 1.1% at 96.12 reais, the equivalent of $20.46, in early trading.

Vale is selling 100% of Mineracao Corumbaense Reunida SA, Mineracao Mato Grosso SA, International Iron Co. and Transbarge Navegacion SA, which together contributed $110 million in earnings before interest, taxes, depreciation and amortization. The companies hold iron ore, manganese ore and logistics assets in Vale's Midwestern System operations.

The buyer will assume all the take-or-pay logistics commitments of the companies, along with the operations and all their employees, and the transaction is subject to approval by the relevant authorities, Vale said.

Write to Jeffrey T. Lewis at [e-mail]

(END) Dow Jones Newswires

04-06-22 1000ET