Vale ( NYSE: VALE ) has received multiple bids for a stake of as much as 10% in its base metals business following talks with sovereign wealth funds, automakers and industrial groups, CEO Eduardo Bartolomeo told the Financial Times on Tuesday.
Iron ore provides 80% of Vale's ( VALE ) revenues, but Bartolomeo said the base metals business - which includes nickel mines in Canada and Indonesia, copper mines in Brazil, and interests in cobalt and platinum group metals - could eventually outgrow its parent and float on the stock market.
The new investor will not be a mining company, which rules out rivals such as BHP ( BHP ) or Rio Tinto ( RIO ), but a carve-out of the base metals business would proceed even if a suitable partner was not found, Bartolomeo said.
An offtake agreement, in which Vale ( VALE ) supplies metals on a long-term basis, could be part of the new investment arrangement, the CEO added.
Bartolomeo also said he is "cautiously optimistic" about China, which is lifting COVID-19 restrictions .
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Vale weighing offers for stake in base metals business