Vale to take full control of Belvedere coal project
04 June 2010
Brazil Vale SA, the world's second-largest miner after BHP Billiton, plans to take full control of Belvedere hard coking coal project in Australia as coal prices in the international market has shot up to keep pace with iron ore prices.
Vale, which currently owns 75.5 per cent of Belvedere after it acquired an additional 24.5 per cent last month from mining investor AMCI Investments for $110.5 million by exercising an option, is now exercising another option to buy 24.5 per cent stake from Aquila Resource Ltd.
Vale had initially bought a 51-per cent stake by paying $45 million each to Aquila and AMCI.
Rio de Janerio-based Vale has not revealed the financial terms of the deal, but said in a statement that it will pay a fair market value as agreed in the option agreement between it and Aquila.
Under the option agreement, both companies will have to get independent valuations of Aquila's stake.
If both the valuations are within 10 per cent of each other, then the average price of both valuations will be taken, but a third valuation will be done if the first two valuations are more than 10 per cent apart.