Anglo American Acknowledged Conversations With Vale Regarding Serpentina Iron Ore

Both companies have held early conversations regarding the possibility of…

Anglo American Acknowledged Conversations With Vale Regarding Serpentina Iron Ore

Both companies have held early conversations regarding the possibility of developing Vale’s Serpentina deposit, which is adjacent to Anglo American’s Minas-Rio iron ore plant in Brazil, together, according to Anglo American’s press release. While Anglo did not disclose the specifics of its “processing and logistical infrastructure,” Vale has said that the cooperation might use Anglo’s 328.7-mile (529-kilometer) transportation network and port in Minas Rio, which contains mining.

In a statement echoing Vale’s, Anglo said there was no guarantee that a sale would be concluded or the terms of the agreement. According to the Brazilian miner, it is common to do commercial relationship evaluations.

Anglo purchased Minas-Rio from Eike Batista in 2007-2008 for around $5.5 billion. Iron ore output of 24.1 million metric tons in 2013 was a record high, allowing the miner somewhat to overcome the effects of last year’s pandemic.

According to Vale, Minas-Rio and Vale’s current processing and logistical infrastructure would be used in the agreement.

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On the other hand, Anglo American observed that these conversations are in their infancy and that no agreement can be guaranteed to be achieved or, if one is, the terms and extent of any such agreement cannot be guaranteed.

The Serpentina project has mining rights next to Anglo American’s Minas-Rio operation in the Minas Gerais municipalities of Conceiço do Mato Dentro, Santo Antônio do Rio Abaixo, and Morro do Pilar. Diamonds, copper, platinum group metals, premium iron ore, and metallurgical coal for steelmaking are some of the commodities produced by Anglo American. By 2040, the corporation plans to be carbon neutral in all its activities.

Brazil’s largest mining company, Vale, has shown an interest in Anglo American’s iron ore project in the northeastern state of Minas Gerais.

Open pit mines and a beneficiation facility are part of the iron ore project for which Vale is contemplating purchasing a 30-40 percent share.

There is a possibility that the Brazilian mining company may potentially acquire a part in the project as an operator.

For Vale, increasing annual iron ore production capacity to 400 million metric tons via this purchase will assist its goal of being the leading provider of premium iron ore. The parties began preliminary conversations in 2020. However, the discussions have not progressed to the point where they can be submitted to the company’s board of directors. As a result, the sources say that a deal is still uncertain.

The project also includes a 529-mile pipeline, a filtration facility, and an export terminal in the Atlantic port of Acu in Rio de Janeiro state. It is located in the south-eastern part of Brazil. Iron Ore Brazil, a subsidiary of Anglo American, owns 100 percent of the Minas-Rio iron ore export project.

Anglo American bought MMX Mineracao e Metalicos SA’s 26.5 million-tonne-per-year project in 2008 for $2 billion.

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