Vale (NYSE:VALE) has agreed to invest approximately US$190 million ($270.4 million) for a 30% minority interest in Brazilian iron ore producer Ligga.
The investment will be made through a capital contribution and remains subject to customary corporate and regulatory approvals.
Ligga operates the Ferro Sul Mine in the municipalities of Parauapebas and Curionópolis, within the Carajás region of Pará state.
The operation currently has capacity to produce about 2 million tonnes (Mt) of iron ore annually. Ligga plans to increase capacity to 8Mt per year through a new beneficiation plant, infrastructure works, and a rail connection.
In a statement on its official LinkedIn page, Ligga says the expansion is expected to generate employment and income and contribute to the development of surrounding communities.
Vale says the expanded operation is scheduled to begin in June 2028.
The transaction also includes a long-term offtake agreement giving Vale exclusive rights to purchase all sinter feed iron ore produced by Ligga.
Production will be transported along Vale’s Carajás Railroad to the Ponta da Madeira Maritime Terminal in São Luís, Maranhão.
Vale says the arrangement will provide additional high-quality iron ore volumes for its Northern System while using existing logistics infrastructure and requiring less capital than developing a new greenfield operation.
The company has not confirmed third-party estimates concerning Ligga’s mineral reserves, possible further expansions, other ore types, or future pellet feed production.
Vale disclosed the agreement after Brazilian regulators requested clarification regarding an earlier media report.
Vale is a Brazilian mining company producing iron ore, nickel, and copper, with operations and logistics assets across several countries.
Write to France Pinzon at Mining.com.au
Main image: Vale
