Vale ( NYSE: VALE ) will separate its base metal assets from its iron ore operations and unveil a strategic partner in next year's H1, CEO Eduardo Bartolomeo and CFO Gustavo Pimenta told Bloomberg at its Investor Day Wednesday.
Vale ( VALE ) will place its copper and nickel mines into a new legal structure, with independent governance and a board that includes deep underground mining and electric vehicle specialists, the company said, according to Bloomberg.
Separating the two sides of the business is key to accessing "competitive" capital needed for an estimated $20B of base metal investments, which combined with the sale of as much as 10% of the new entity to a partner, will unlock value from a business that Vale ( VALE ) sees worth as much as $40B, Bartolomeo said.
A potential IPO is something to be weighed down the road, depending on market conditions and how well Vale ( VALE ) executes current plans, Bartolomeo said.
Vale ( VALE ) trades lower Wednesday, -3.3% , after guiding for flat iron ore production next year .
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Vale plans to spin off base metals business, sell stake in 2023