VALE OPENS DOOR TO BASE METAL MERGER ONCE HOUSE IN ORDER

If iron ore giant Vale SA decides to separate its base metals operations, it may look at the possibility of merging that business with the assets of another company. Chief executive Eduardo Bartolomeo opened the door to such a possibility during the Financial Times Mining Summit on Thursday. The world’s second-largest producer of iron ore continues to weigh up the pros and cons of forming a separate company with its copper and nickel mines in Canada, Brazil and Indonesia. The goal is to unlock value as the global transition toward clean energy gains momentum. A merger would help Vale gain scale as new deposits get pricier to find and develop. “When you have this vehicle you might find a way to merge with somebody who has synergies with you,” Bartolomeo said.