Vale Invests $190 Million for Stake in Ligga S.A.

Vale is acquiring a 30% minority interest in Ligga S.A. through an investment of approximately $190 million. The agreement establishes an exclusive offtake arrangement, granting Vale the right to purchase 100% of the sinter feed produced at the Ferro Sul mine in Brazil's Carajás region.

The investment is designed to scale Ligga's annual output from 2 million to 8 million tonnes by mid-2028. To facilitate global export, the company will utilize the Carajás Railroad and the Ponta da Madeira Maritime Terminal.

The transaction drew scrutiny from B3, Brazil's stock exchange, which requested clarification after the deal leaked to the media. B3 argued the agreement constituted material information that required immediate disclosure to investors. Vale countered that the deal was not a material fact and did not cause atypical fluctuations in its security prices. Marcelo Feriozzi Bacci, Vale's Executive Vice President of Finance and Investor Relations, stated the move increases the company's portfolio flexibility.