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Vale may unload stake in MRN

Keywords: Tags  Vale, Mineracao Rio do Norte, Murilo Ferreira, bauxite, aluminum, Norsk Hydro, Carolina Guerra

SÃO PAULO — Vale SA is considering selling its 40-percent stake in Brazilian bauxite producer Mineração Rio do Norte SA (MRN).

"There are noncore assets which are being evaluated that can become divestment targets, and that includes MRN," Vale chief executive officer Murilo Ferreira was quoted as saying in local business newspaper Valor Econômico.

MRN produced 17.1 million tonnes of bauxite in 2012, up 1.8 percent from the previous year, according to the company’s annual report.

At the end of last year, Rio de Janeiro-based Vale announced a $4.2-billion impairment charge of its aluminum and nickel assets. It reduced the market value of its 22-percent stake in Norsk Hydro ASA due to low aluminum prices and uncertainties regarding the European economy.

A version of this article was first published by AMM sister publication Metal Bulletin.

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