Vale takes full control of Baovale iron ore project

Brazilian miner Vale confirmed on Thursday it has bought the 50% stake in its Baovale tie-up previously owned by its Chinese partner Baoshan Iron & Steel, known as Baosteel, a move that gives Vale full control of the iron ore project.

The Baovale joint venture was established by the Brazilian mining giant and Baosteel in 2001 to run the Agua Limpa mine in Brazil’s Minas Gerais state. The venture included a purchase option allowing for the possibility of Vale acquiring the stake owned by Baosteel.

Last year, Vale informed Baosteel that it sought to exercise the purchase option, the Brazilian miner said in a statement. It added that the purchase deal with Baosteel has been signed, but did not disclose how much it paid for the stake.

The transaction must still be approved by Brazil’s antitrust watchdog CADE.

Earlier on Thursday, newspaper Valor Economico reported that in last year’s third quarter, Vale disclosed a value of 135 million reais ($23.4 million) for the 50% stake.

($1 = 5.7758 reais)

(By Isabel Teles; Editing by Gabriel Araujo and David Alire Garcia)