Vale gains full control of Baovale by purchasing Baosteel’s shares

Vale had been collaborating with Baosteel on the Agua Limpa mine through the Baovale joint venture, which was established in 2001. The joint venture included an option for Vale to purchase Baosteel’s stakes, and last year, Vale informed Baosteel of its intention to exercise this option. With the acquisition of Baosteel’s stake, Vale will now have full control over Baovale. The deal is awaiting approval from Brazil’s antitrust administration, CADE. 

Although Vale has abstained from sharing details on the financial aspects of the deal, Brazilian financial newspaper Valor Economico reported that Vale valued its 50% stake in Baovale at $23.4 million (approximately 135 million Brazilian Reais) in the third quarter of 2024. 

Since 2018, Vale has the highest iron ore production capacity. As of 2024, Vale’s iron ore production is reported to have reached 328 million tons, with the company projecting a production range of 325 million to 335 million tons for 2025.