Rio de Janeiro, Brazil, April 6, 2022-Vale announced that it has today sold Minera ã o Corumbaense Reunida S.A., Minera Rio ã o Mato Grosso S.A., International Iron Company, Inc. Enter into a binding agreement with all shares issued by Transbarge Navegaci ó n Sociedad An ó nima, which holds iron ore, manganese ore and logistics assets of Sino-Western Systems, which stipulates that the buyer shall bear the rights and obligations of all "pay-or-pay" logistics contracts with the consent of the counterparty. Under the agreed terms, the transaction is valued at approximately $1.2 billion, with a group of assets contributing $110 million to Vale's adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) in 2021. Upon completion of the transaction, Vale will receive approximately $150 million and transfer "pay or not" logistics contractual obligations and other obligations related to the traded assets to the buyer with the consent of the counterparty to the transaction.
The buyer will also continue to operate on the premise of retaining all employees. The completion of the transaction depends on the fulfilment of the prerequisites, including approval by the Brazilian Administrative Commission for Economic Protection (CADE), Brazil's National Waterway Transport Agency (ANTAQ), the Brazilian National Defence Commission (CDN) and other regulatory authorities.
The sale of Chinese and Western systems assets, which produced 2.7 million tons of iron ore and 200000 tons of manganese ore in 2021, is guided by strict capital allocation and is in line with Vale's strategy of simplifying its portfolio and focusing on its main business and growth opportunities.
