Brazilian miner Vale SA, the world’s largest producer of iron ore and nickel, said this week it had agreed with the investment fund Hankoe FIP to buy the innovation company New Steel for US $500 million.
New Steel develops innovative technology to process iron ore and currently holds patents in 56 countries for its dry processing method known as Fines Dry Magnetic Separation or FDMS, they said.
The transaction is expected to occur in 2019, subject to the approval of the antitrust authorities in Brazil.
The New Steel technology will support the development of Vale’s high-grade pellet initiatives, including the Southeastern System 20 Mtpy pellet feed project, Vale said.
Vale has focused on the sales of better-quality iron ore, mainly from its S11D project in the state of Pará, as the demand for cleaner and less polluting products in China, its main market, increases.
With a strong cash generation from the sale of its premium mineral, Vale announced last week the purchase of the majority stake in the mining company Ferrous Resources for close to US $550 million.