Vale (NYSE: VALE) has shelved plans for an initial public offering of its critical-minerals subsidiary Vale Base Metals Ltd. amid political opposition in Brazil to potentially losing control over strategic mining assets.
The Globe and Mail reported the decision, citing unnamed sources. London-based VBM was carved out internally from its parent in 2023 in preparation for an eventual listing and operates with separate management and investor-relations teams. CEO Shaun Usmar said in March the company was working to have the business ready for a potential IPO by midyear.
The listing could still be revived at a later date, according to the report.
VBM holds Vale’s global portfolio of copper, nickel and cobalt operations across Canada, Brazil, Japan, Britain and Indonesia. Vale acquired its Canadian nickel assets through its 2006 takeover of Inco Ltd.
Copper focus
VBM agreed in February to sell most of its stake in a Canadian nickel venture as Vale focuses on doubling copper production over the next decade.
The strategy comes as copper, a key metal for electrification and energy infrastructure, has outperformed nickel. Copper prices have climbed about 45% over the past year, roughly four times nickel’s gain.
Putting the IPO on hold leaves Vale with its base metals portfolio intact as it pursues that copper expansion, while preserving the option of returning to public markets with the unit later.
Source: https://www.mining.com/vale-shelves-base-metals-ipo-amid-brazil-pushback-report/
