Vale gains full control of Baovale iron ore project

The company bought 50% of its joint venture shares from China's Baosteel

Brazilian mining company Vale has confirmed that it has bought a 50% stake in its Baovale joint venture, previously owned by its Chinese partner Baoshan Iron & Steel (Baosteel), Reuters reports.

The move gives Vale full control of the iron ore project. The deal still needs to be approved by Brazil’s antitrust agency CADE. This regulatory review is a standard procedure for significant acquisitions and mergers in Brazil.

Vale refrained from disclosing financial details of the deal. However, the Brazilian daily Valor Economico previously reported that the company’s report for the third quarter of last year indicated that the 50% stake was valued at 135 million reais (approximately $23.4 million).

The Baovale joint venture was established in 2001 to operate the Agua Limpa mine in the Brazilian state of Minas Gerais. The original agreement included a call option that allowed Vale to eventually acquire the Chinese partner’s stake, and last year the Brazilian concern informed Baosteel that it was seeking to exercise it.

As GMK Center reported earlier, Vale reached its highest level of iron ore production since 2018 in 2024, reaching 327.67 million tons, up 2% year-on-year. Pellets production increased by 1.2% y/y – to 36.89 million tons.

The company expects iron ore production to reach 325-335 million tons in 2025 and pellet production to reach 38-42 million tons. The mining giant noted that 2024 was a period of operational stability and the launch of key projects. The decline in production in the fourth quarter is explained by the fact that Vale has reduced the production of low-iron ore at its operations in the Southern region of Brazil.