Deals

Vale Bolsters Case for Takeover of BHP JV With Acquisition

Vale agreed to buy technology firm New Steel for $500 million
New Steel’s technology reduces space needed to store waste

The rebuilding site next to the collapsed iron ore waste dam of Brazilian mining company Samarco, in Brazil in 2016.
Photographer: Yasuyoshi Chiba/AFP via Getty Images

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By Rt Watson

December 13, 2018 at 12:00 AM UTC

Updated on

December 13, 2018 at 2:35 PM UTC

This article is for subscribers only.

Vale SA’s latest acquisition bolsters the argument it has raised for taking complete control of the shuttered Brazilian iron ore mine that it owns with BHP Group.

Vale announced on Tuesday the purchase of technology firm New Steel for $500 million as it aims to boost output of high-grade iron ore products that have been fetching premium prices. New Steel owns technology capable of improving both production and waste storage at mines just like the Samarco joint venture with BHP.