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Vale shelves planned IPO for Vale Base Metals unit amid Brazil opposition
The Globe and Mail report says the unit was carved out in 2023 for a possible listing, but political concerns over control of strategic mining assets pushed Vale to pause.
Vale has shelved plans for an initial public offering of its critical-minerals unit, Vale Base Metals Ltd, citing political opposition in Brazil over the risk of losing control of strategic mining assets, according to The Globe and Mail, as summarized by Mining.com.
Vale Base Metals was created through an internal carve-out in 2023, with separate management and investor-relations teams, and company CEO Shaun Usmar previously said it was working to be ready for a potential IPO by midyear.
The unit holds Vale’s global portfolio of copper, nickel and cobalt operations across Canada, Brazil, Japan, Britain and Indonesia, while Vale has been shifting focus toward expanding copper production over the next decade.
Keeping the IPO on hold leaves the base metals portfolio intact as Vale pursues its copper push, amid recent performance trends with copper up about 45% over the past year versus nickel’s much smaller gain, and Vale Base Metals also agreed in February to sell most of its stake in a Canadian nickel venture.
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