Vale acquires 30% stake in Ligga to expand iron ore production

Vale has entered a strategic agreement to acquire a 30% minority stake in Ligga S.A., a mining company operating in the Carajás region of Pará, Brazil. Under the deal, Vale has also secured an exclusive offtake contract to purchase all of Ligga’s current and future production over the long term.

Ligga currently produces 2 million tons of sinter-feed iron ore annually. The partnership aims to quadruple this volume to 8 million tons within two years. The expansion project, which has already received installation licenses from the Pará State Secretariat for Environment, Climate, and Sustainability, includes plans for a new processing plant, infrastructure improvements, and a railway solution.

Separately, market analysts are monitoring Vale’s strategic shift toward copper as a primary growth driver to offset challenges in the iron ore sector. While weak iron ore prices and high freight costs present difficulties, Vale is utilizing long-term contracts to protect 70% to 75% of its volumes from market volatility. The company is also looking toward Southeast Asian markets, such as India and Vietnam, to compensate for shifting demand in China.