Brazilian mining major, Vale, has concluded the sale of its stake in steelmaker, Companhia Siderurgica do Atlântico (CSA) to thyssenkrupp. Vale had owned 26.87% of CSA. Its sale gives thyssenrkupp full control of the steel plant.
Located in the industrial district of Santa Cruz in the state of Rio de Janeiro, CSA is an integrated steel mill complex that produces steel slabs for export. The plant has the capacity to manufacture up to 5 million tpy of steel.
Vale’s interest in CSA was acquired for a “symbolic price” with an earn-out clause in the event the thyssenkrupp sells CSA. Vale will retain the existing iron ore supply contract for CSA but all other rights and contracts were cancelled by the deal.
“By streamlining the ownership structure, thyssenkrupp is reducing the complexity and risks and increasing its room for maneuver for the further development of CSA,” the German industrial conglomerate said in a press release.
Vale has been undertaking a programme of sales of non-core assets in recent months against a background of falling commodity prices and difficult business conditions for the global mining industry.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/01062016/vale-completes-sale-of-csa-to-thyssenkrupp-2016-871/