RPT-Brazil's Vale mulling IPO for part of base metals business - sources
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By Nicole Mordant and Euan Rocha
VANCOUVER/TORONTO Dec 1 (Reuters) - Brazil's Vale SA is considering listing part of its global base metals business, two sources with knowledge of the matter said on Monday, as the miner looks to fund capital projects amid a collapse in iron ore prices.
The sources, who asked not to be named as they have not been authorized to discuss the matter publicly, said 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 plan to list a new entity in Toronto and London as early as Tuesday at an investor day event being held in New York, said one of the sources.
The event at the New York Stock Exchange will be webcast.
The second source said there had been significant discussion inside Vale about listing the base metals assets, which have fared better than its iron ore business due to steadier prices.
A Vale spokeswoman in Brazil could not be reached for comment after hours.
Vale's iron ore business contributed 62 percent of the company's gross revenue in the third quarter. Outside of iron ore, Vale's global asset portfolio includes nickel assets in Canada, Indonesia and New Caledonia, coal mines in Australia and Mozambique as well as copper projects in Canada, Brazil and Zambia. Continued...