UPDATE 1-Brazil's Vale mulls listing part of base metals business -sources

Tue Dec 2, 2014 9:30am EST
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(Adds details, background, sourcing)

Dec 2 (Reuters) - Brazil's Vale SA is considering listing part of its global base metals business in Toronto and London, according to multiple sources with knowledge of the plan, as the miner looks to fund capital projects amid a collapse in iron ore prices.

The sources, who asked not to be named because they have not been authorized to discuss the matter publicly, said Vale, the world's top iron ore producer, is likely to retain a majority interest in the new entity if it proceeds with the plan.

Vale could outline the broad details of the plan for Toronto and London as early as Tuesday at an investor day event in New York, said one source. The event at the New York Stock Exchange will be webcast.

A second source said Vale will mention the possibility of an initial public offering in those markets at the investor day, but added plans are preliminary and will be deliberated on in the next few weeks.

A third source said there have been significant discussion inside Vale about listing the base metals assets, as they have fared better than the iron ore business due to steadier prices.

Another source said an update for investors on this plan is set to come shortly and that Vale has had it on the back burner since 2009.

A Vale spokeswoman in Brazil declined to comment.

Vale Chief Executive Officer Murilo Ferreira is the former head of the company's base metal assets, headquartered in Toronto. Vale recently named Jennifer Maki, a longtime Vale finance executive, as head of its base metals arm in Canada. She is the first Canadian to head the business and replaces Peter Poppinga, who moved back to Brazil to head Vale's iron ore business.   Continued...