Vale buys Ligga iron ore stake for $190M

Vale (VALE) agreed to buy a 30% stake in Ligga S.A., operator of the Ferro Sul iron ore mine in Brazil, for $190M. The deal was announced after Brazil's stock exchange questioned its initial non-disclosure.

Vale (VALE) is acquiring a 30% stake in Ligga S.A. for $190M to boost iron ore production. The deal includes an exclusive offtake agreement and aims to quadruple Ligga's output to 8M tonnes annually. Vale's shares fell 0.7% to $14.05. B3, Brazil's stock exchange, questioned the lack of prior disclosure. The acquisition is pending approvals.

RBC increased its price target for Vale from $15 to $16 but maintained a Sector Perform rating. The company's stock is currently trading at 73.13 BRL, reflecting a 2.53% decrease over five days and a 7.42% decline year-to-date. The update was published on September 16, 2026.

Vale and HMM signed a $3.5B 25-year charter for eight tri-fuel iron ore carriers, starting in 2030. The ships will use methanol, ethanol, and heavy fuel oil, with options for LNG and ammonia. Vale aims to secure shipping capacity and reduce emissions, while HMM diversifies into bulk shipping. Vale is the world's largest iron ore producer, with significant revenue from China.

Vale, the world's largest iron ore miner, is preparing to issue panda bonds in China's market, possibly in 2026. Finance chief Marcelo Bacci stated the move aligns with Vale's revenue, as China accounts for about 50% of its sales. The bond size is expected to be modest, around US$400-500 million, with a focus on diversifying funding sources and matching commercial reality. Vale's shares traded around 78.53 reais (US$15.40) in São Paulo.

HMM, a South Korean logistics firm, signed a $3.5B long-term deal with Vale to transport iron ore from 2030. The 25-year contract per vessel is HMM's third with Vale. HMM ordered eight eco-friendly bulk carriers for delivery starting 2030. According to HMM, the deal strengthens their partnership and ensures earnings stability.