Brazilian mining company Vale has completed the sale of its 36.4% stake in its subsidiary Minerações Brasileiras Reunidas (MBR) for R$4bn ($1.08bn).
In July, Vale signed a sale and purchase agreement to sell preferred class A shares of MBR through Fundo de Investimento em Participações Multisetorial Plus II (FIP Plus II).
MBR owns assets for production, transportation and port shipment of iron ore.
Among these assets, mines and industrial plants of Vargem Grande, Abóboras, Pico, Mutuca, and Mar Azul, as well as Jangada, accounted for the production of approximately 65mt of iron ore in 2014.
According to Vale, the assets are operationally integrated into the company's production, transportation and port shipment system, which is called Southern System.
The assets are also leased to Vale until 2037.
Based on the leasing contract signed, Vale is responsible for all the operation and commercialisation of iron ore produced in the leased assets.
MBR is also required to provide the necessary funds to implement the investment plan agreed among the parties to preserve the productive capacity of the leased assets.
Following completion of the deal, Vale will directly and indirectly own 61.9% of the total MBR capital and of 98.3% of its ordinary capital.