Brazilian iron ore producer Vale is still looking to sell assets, despite a deal firmed recently with Fortescue Metals Group.
Vale announced this week it could buy a minority stake of between 5 and 15 percent at Australian rival Fortescue Metals. Seen by analysts as positive, the deal, which was signed in the form of a memorandum of understanding (MOU), won’t prevent Vale from selling some $10 billion in assets to reduce debt.
Vale clarified this week the MOU only defines “certain general principles” through which both Vale and Fortescue wish to advance in terms of understanding.
Vale added its short- and medium-term priorities are concluding its S11D project and deleveraging its balance sheet, so it can increase its financial flexibility.