Brazil Government Will Sell All Its Equity Stake in Vale, Says Economic Ministry

RIO DE JANEIRO, BRAZIL – The Ministry of Economy’s Special Secretary of Privatization Salim Mattar said, on Friday, August 7th, that the federal government will reduce its stake in Vale mining company by 100 percent, stressing that it is not the goal of the government to be a company shareholder.

“The government still has a stake in Vale and is reducing it until it sells 100 percent,” said Mattar while participating in the show “Os Pingos nos Is”, on Jovem Pan Radio. “This government will substantially reduce its corporate portfolio and hedge fund,” he said.

Earlier in the week, Brazil’s National Bank for Economic and Social Development (BNDES) raised R$8.1 billion with the sale of a block of the mining company’s shares, at R$60.26 each, according to the institution’s president, Gustavo Montezano.

Mattar pointed out that the government still holds company shares close to this R$8 billion figure that can be sold. “The government no longer wants to be a shareholder. We want to allocate these resources to reduce debt or to improve citizens’ quality of life,” he said.

Further, according to the secretary, the government now has 14 companies in line to be privatized.

Source: Reuters