Vale considers listing base metals business in late 2026

Bruno Venditti | September 27, 2024 | 9:25 am News 
Vale’s global base metals headquarters is in Ontario. (Image: Vale)

Vale (NYSE: VALE) is considering a potential public listing for Vale Base Metals by the end of 2026, according to the chair of Vale Base Metals (VBM), Mark Cutifani.

Vale separated its nickel, copper and cobalt operations from its iron ore business last year and sold a 10% stake to Saudi Arabia to unlock value from the unit. Speaking at the FT Mining Summit on Friday, Cutifani said the business could be valued at $40 billion.

“The end of 2026 going into 2027 is our objective for an IPO,” Cutifani said.

He added that there is a pathway to “increase that value.”

Even if Vale Base Metals does not go public, Cutifani noted, it would be “a very different company by the end of 2026.”

New CEOs

The decision on whether or not to list would ultimately fall to incoming Vale CEO Gustavo Pimenta, Cutifani added.

Vale Base Metals’ new CEO, Shaun Usmar, will take over the role starting October 1, 2024. The executive, with 30 years of experience, will be based in Toronto.

Before assuming leadership at Vale Base Metals, Usmar founded Triple Flag (XTSE: TFPM) and served as senior executive vice president and chief financial officer at Barrick Gold (TSE: ABX). His career also includes significant roles at Xstrata and BHP Billiton.

Over the next decade, VBM plans to invest $25-30 billion in strategic mineral projects in Brazil, Canada, and Indonesia, aiming to nearly triple copper production to 900,000 tonnes per year and almost double nickel output to 300,000 tonnes per year, up from the current 160,000-175,000 tonnes.

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