Vale expects fresh news about base metals stake sale in H1

Vale expects fresh news about the sale of a stake in its base metals unit to come in the first half of this year, an executive told analysts in a conference call on Friday.

Vale said it was in talks with potential partners for the unit, after revealing last month it had received offers for a minority stake in the business comprising nickel and copper production.

The stake sale is part of Vale’s decision to separate its iron ore operation from its copper, nickel and platinum assets, into a new firm named Vale Base Metals that will be based in the UK.

On Thursday, the company said its fourth-quarter net profit fell 30.4%, under pressure from reduced production and lower iron ore prices, while still beating analysts’ forecasts.

Vale posted net income of $3.724 billion, compared to the $2.5 billion forecast compiled by Refinitiv.

Iron ore production was down 1% in the quarter to 80.85 million tonnes, with an average realized price of iron ore fines of $95.6/t, compared to $107/t in the fourth quarter of 2021.

(With files from Reuters)