Miners Anglo and Vale negotiate a joint development of the Serpentina iron mine

Anglo American confirmed Wednesday that it is holding preliminary talks with Vale SA on the potential joint development of the Brazilian miner’s Serpentina project, adjacent to the London-listed company’s Minas-Rio iron ore mine.

Anglo did not release details, but Vale said a day earlier that the potential partnership could take advantage of the “processing and logistics infrastructure” of English in Minas Rio, which includes a mine, a 529-kilometer transportation pipeline and a port.

Anglo said there was no certainty that a deal would be reached or what its terms might be, echoing Vale, which said no decision had been made on the project. The Brazilian miner said it often evaluates partnerships as part of its business.

Vale’s disclosure on Tuesday came after Bloomberg News reported last week that the Brazilian miner was considering acquiring a minority or majority stake in Minas-Rio, citing people familiar with the preliminary discussions.

Anglo bought Minas-Rio in 2007-2008 from former Brazilian billionaire Eike Batista for about $ 5.5 billion.

The mine performed well last year, producing 24.1 million tonnes of iron ore, helping the miner offset some of the impact of the pandemic.

The Serpentina project comprises mining rights in three municipalities in the Brazilian state of Minas Gerais, Vale said.


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