J&F Mineração has agreed to pay $1.2 billion to buy Vale’s Midwest System, the Brazilian miner said on Wednesday.
The Midwest System includes the following companies: Mineração Corumbaense Reunida S.A., Mineração Mato Grosso S.A., International Iron Company, Inc. and Transbarge Navegación Sociedad Anónima.
Vale said the Midwest System businesses generated $120 million in adjusted EBITDA in full-year 2021, and produced 2.7 million mt of iron ore and 200,000 mt of manganese in full-year 2021.
Vale said J&F will pay $150 million up-front in the transaction close. J&F will also assume any existing take-or-pay logistics contracts, as well as any other liabilities. The deal is still subject to regulatory approval.