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Vale buys 30% stake in Ligga to expand iron ore output
The deal includes about $190 million in investment and a plan to quadruple Ligga production to 8 million tonnes a year, with expanded operations starting mid-2028.
Vale has confirmed it is acquiring a 30% minority interest in Ligga S.A. as part of efforts to increase iron ore production, after Brazil’s stock exchange, B3, questioned why the transaction had not been disclosed to investors earlier, Mining.com reported. Vale said the agreement covers an exclusive offtake arrangement tied to about $190 million in investment, including a right for Vale to purchase 100% of Ligga’s sinter feed production. The expansion is designed to lift Ligga’s output to 8 million tonnes a year from about 2 million tonnes. Vale also said the arrangement would add flexibility to its Northern System iron ore portfolio, citing lower capital intensity and integration with existing logistics infrastructure. Ligga operates the Ferro Sul mine in the Carajás region of Pará state in northern Brazil. Under the plan, Ligga’s expanded operations are intended to begin mid-2028, and production will be transported via the Carajás Railroad to the Ponta da Madeira Maritime Terminal in São Luís, Maranhão. Vale currently produces about 330 million tonnes of iron ore annually from its two Brazilian operations, and its Sept. 22 market notice followed a request from B3 for clarification after InfoMoney reported the transaction the day before.