Vale weighs base metals IPO in three to four years

Vale’s global base metals headquarters is in Ontario. Credit: Vale

Vale (NYSE: VALE) is not seeking new partners for its Base Metals unit following a recent equity sale, but could consider an IPO for the unit within three or four years, CEO Eduardo Bartolomeo said on the sidelines of the Financial Times Mining Summit held in London, according to Notícias de Mineração.

The executive said the priority is to execute Vale Base Metals’ projects and expedite growth.

Vale Base Metals said last month it is committing US$10 billion ($13.5 billion) for investment in Indonesia over the next decade.

The investment is part of the company’s plan to spend $25 billion to $30 billion on new projects in Brazil, Canada, and Indonesia over the next decade.

The company aims to nearly triple copper output to 900,000 tonnes a year in 2030 from 335,000 to 370,000 tonnes this year. The goal is to almost double nickel production at the same time to 300,000 tonnes per year from 160,000 to 175,000 tonnes in 2023.

Vale shares were up 2.6% to US$13.21 ($17.94) on Tuesday at mid-day in Toronto, valuing the company at US$58.7 billion. Its shares traded in a 52-week range of US$12.22 and US$19.31.

 

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