Vale Denies It Weighed Buying Back Its Old Corumbá Mines

Mining

Vale has denied it was preparing to buy back the Corumbá mines it sold four years ago. The rumour adds fresh friction to a board already braced for a contested leadership vote.

The world’s largest iron-ore miner responded on Tuesday to a press report of talks to reacquire the assets. It said it had studied the idea and decided against it.

What Vale said

In its statement, Vale said it regularly weighs investment opportunities that could serve its strategic priorities. Capital decisions, it added, follow a rigorous review and its own governance rules.

On this asset it was blunt. The company said it had evaluated the opportunity and discarded any investment tied to the Corumbá iron-ore mines.

Vale sold that complex, in the Pantanal region of Mato Grosso do Sul, to the Batista brothers’ J&F group in 2022 for roughly 1.2 billion US dollars. The move was billed as part of a drive to simplify its portfolio.

The report behind the denial

The controversy began with a column by journalist Lauro Jardim. It described a May dinner between senior Vale figures and the Batista brothers, followed by a private-jet trip to visit the mines the next day.

According to the account, a board member and chairman candidate later emailed colleagues suggesting Vale study a joint venture with J&F. Other directors reportedly learned of the dinner and visit only weeks afterwards.

Why the timing stings

The story surfaces at a delicate moment. Vale’s shareholders meet on July 22 to elect a new board chairman, after a months-long governance fight led by its largest investor, the pension fund Previ.

The previous chairman, Daniel Stieler, resigned on July 6, days before a vote on removing him. Previ, tied to a state-owned bank, is often watched for any sign of government influence over the miner.

For a foreign reader, the takeaway is less the failed deal than the disclosure question. A rumour about an undisclosed contact can shape how investors judge a boardroom already under strain.

Analysts have largely treated the wider board fight as governance noise rather than a threat to earnings. Major banks have kept buy ratings on the stock through the turbulence, with the shares trading near 79 reais.

Did Vale try to buy back the Corumbá mines?

Vale said it evaluated the opportunity to reacquire the Corumbá iron-ore mines and discarded any related investment. It sold the assets to the Batista brothers’ J&F group in 2022 for about 1.2 billion US dollars.

Why does the Corumbá report matter now?

It surfaces a week before a July 22 shareholder vote on Vale’s next board chairman, adding to a governance fight led by top shareholder Previ. A press column linked a chairman candidate to a J&F joint-venture idea, raising disclosure questions.

Who bought Vale’s Corumbá mines?

The J&F group, controlled by brothers Joesley and Wesley Batista, bought the Corumbá complex in 2022, creating the mining arm now known as LHG Mining. The assets produce iron ore and manganese in Mato Grosso do Sul.

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