Vale is in talks with China Investment Corp (CIC) to sell its future iron ore production, a media report said.
As previously reported by SteelOrbis, Vale is expected to raise up to $10 billion if it reaches a streaming iron ore deal, which could represent up to 3 percent of the company’s future output for the commodity.
The company denied the information on August 10, but a new report by Bloomberg said CIC was in talks with the Brazilian miner.
The media report explained the sovereign fund consortium is negotiating the purchase of a portion of Vale’s iron ore output for as long as 30 years. Despite the on-going conversations, no agreements have been reached, and the talks may not result in a deal, according to unnamed sources.
If a deal is reached, Vale would receive immediate cash, while remaining in charge of valuable assets, the media report said.