An outcropping of a copper and nickel deposits. Vale is separating off it metals operations as the push toward electric vehicles increases demand for copper and nickel.Brazil-based Vale SA plans to separate its base metal operations into a distinct entity from its main iron ore business sometime in mid-2023, a move that will affect its nickel operations across Canada., as a way to ensure its base metal operations — which include nickel mines and plants in Sudbury, Ont.; Thompson, Man.
“It is fundamental for us to create a vehicle here that can fund itself without competing with the use of proceeds of iron ore,” Gustavo Pimenta, chief financial officer of Vale, said at the presentation. “We all know that this enterprise should trade at a substantially higher multiple as compared to the iron ore.”
He described the move as the first step in a years-long process, and left open the idea that the entity could eventually go public. Still, base metals accounted for only about 14 per cent of roughly US$55 billion in revenue in 2021 whereas the lion’s share — 80 per cent — came from its iron ore segment.
Source: News Formal (newsformal.com)
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