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The new CEO of Vale’s (NYSE:VALE) base metals unit, Shaun Usmar, said he aims to prepare the nickel and copper business for a potential IPO by 2027, if not sooner, Bloomberg reported Tuesday.
Separating Vale Base Metals from its parent company as a publicly traded entity could allow it to command a premium over other metals producers, Usmar said in an interview, and selling shares in the base metals division would help finance Vale’s (NYSE:VALE) ambitious plan to spend as much as $30B to boost production capacity across its nickel and copper mines in Canada, Brazil and Indonesia.
While Vale (VALE) and its executives have raised the idea of an IPO in the past, Usmar’s latest comments reinforce how the Brazilian company is still actively weighing a move that could create a standalone entity to rival other base metals producers such as BHP and Glencore.
Usmar said he wants to unlock value in Vale Base Metals by cutting costs and demonstrating consistent operational performance, and is open to considering an IPO, merger, or maintaining the status quo depending on market conditions.
Vale (VALE) split the base metals business from its iron ore operations in 2023 and agreed to sell a 10% stake in the newly separated subsidiary to Saudi Arabia for $2.5B.