08 Aug Vale looking to obtain $10b through iron ore deal with China
Vale (NYSE:VALE) is looking to raise as much as US$10 billion from the sale of around 3% of future iron ore output with Chinese companies.
The world’s largest iron ore producer will receive streaming financing from the companies under the terms of the agreement.
The Rio de Janeiro-based company said in February that it wants to reduce its net debt to $15 billion within 18 months and would look at selling its key assets.
Vale’s fertiliser business is among the candidates for divestment.
US-based Mosaic Co (NYSE:MOS), the world’s largest producer of phosphate fertiliser, is said to be in takes with Vale to buy its fertiliser unit, a deal worth around $3 billion.
Vale already has a deal with Silver Wheaton (NYSE:SLW) with its Salobo copper mine in Brazil. Silver Wheaton will receive 75% and Vale will receive an upfront payment of $800 million.