Vale is negotiating BHP exit from Samarco venture -source‍​

Vale is negotiating BHP exit from Samarco venture -source‍​
(Adds details on possible deal, context)

SAO PAULO, Jan 3 (Reuters) - Vale SA is in talks with BHP Billiton Ltd over the future of their joint venture, Samarco Minerao SA, and one alternative is for the Brazilian miner to buy out its partner, a source with knowledge of the matter said on Wednesday.

A price has not yet been established for any buyout and it would depend on BHP's willingness to exit the venture, said the person, who spoke on condition of anonymity because the negotiations are private.

Contacted by Reuters, Vale and BHP declined to comment. ‍​

Samarco has not operated since November 2015 after flood waters inundated a dam designed to hold back mine waste, causing it to burst and flood nearby towns. Nineteen people were killed in what was Brazil's worst environmental disaster.

Vale thinks that Samarco can return to operating sooner speed up remediation works if it had a sole owner, the source said. Last month, Samarco won preliminary permits, but is not yet allowed to restart.

The deal depends on BHP's willingness to exit, the source added. Samarco is the only iron-ore operation owned by BHP outside Australia. (Reporting by Tatiana Bautzer in Sao Paulo, Marta Nogueira and Alexandra Alper in Rio de Janeiro and Tom Westbrook in Sydney; Editing by Leslie Adler and Grant McCool)

First Published: 2018-01-03 22:12:33
Updated 2018-01-03 22:37:48

© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.
Most read today
Most read yesterday
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.
© 2018 SHARENET (PTY) Ltd, Cape Town, South Africa