Vale S.A. ("Vale") has announced that it entered into a definitive agreement to buy Ferrous Resources Limited ("Ferrous"), a company that currently owns and operates iron ore mines closely located to Vale's operations in Minas Gerais, Brazil. The purchase price is $550 million and the transaction is expected to occur in 2019, subject to various conditions precedent. |
Ferrous has interests in various iron ore mineral resource properties, including four in the Iron Quadrangle, Minas Gerais, and one in Viga North. The company has announced earlier that it would enhance its production capacity of iron ore to 17 mil tons by 2016 and 40 mil tons by 2026.
Ferrexpo, a Swiss-based iron ore company with pellet operations in Ukraine, used to have a 14% interest in Ferrous, but the company sold the stake in June 2015.