keywords :
Vale SA’s latest acquisition bolsters the argument it has raised for taking complete control of the shuttered Brazilian iron ore mine that it owns with BHP Group. Vale announced the purchase of technology firm New Steel for USD 500 million as it aims to boost output of high-grade iron ore products that have been fetching premium prices. New Steel owns technology capable of improving both production and waste storage at mines just like the Samarco joint venture with BHP. Mr Andrew Cosgrove, an analyst at Bloomberg Intelligence, said that "Vale makes its case stronger given that they would be the ones bringing the technology to the table that would help Samarco come back in a more cost-effective manner."
Vale, the world’s biggest producer of iron ore, plans to increase output of the high-grade iron product known as pellets, which is cleaner to process than cheaper grades of the mineral. Vale said it purchased New Steel to help improve pellet output in its southeastern mining system, the same region where Samarco’s operations happen to be located.