Brazilian iron ore producer Vale will buy a 30pc stake in Brazilian miner Ligga as part of an agreement to secure exclusive access to Ligga's soon-to-expand sinter feed output.
Ligga plans to increase iron ore production capacity to 8mn metric tonnes (t)/yr from 2mn t/yr, with the expanded operation expected to come on line in June 2028, Vale said on 22 September.
Vale signed a long-term agreement to purchase 100pc of Ligga's sinter feed production, including additional supply from the planned expansion.
The expansion includes a new beneficiation plant, infrastructure works and a rail solution. Ligga operates the Ferro Sul mine in the municipalities of Parauapebas and Curionópolis, in the Carajás region of Pará state in northern Brazil.
Vale will integrate the additional volumes into its existing logistics infrastructure through the Carajás Railroad and Ponta da Madeira Maritime Terminal in São Luís, Maranhão.
Vale will acquire the minority stake through a capital contribution of approximately $190mn, it said. Completion of the transaction remains subject to customary corporate and regulatory approvals.
