Former Anglo CEO Mark Cutifani
Vale SA has recruited former Anglo American boss Mark Cutifani to lead an independent board that will oversee its new base metals subsidiary, while flagging “news” on a strategic partner by midyear.
Cutifani will join Jerome Guillen, a former Tesla executive, on the so-called energy transition metals board, Vale CEO Eduardo Bartolomeo said on an earnings call earlier this month.
Vale, which makes most of its money from iron-ore mines in Brazil, is looking to bring in fresh capital and expertise to grow its nickel and copper operations in Canada, Brazil and Indonesia at a time when battery metal demand expands in the move away from fossil fuels.
The separation plan, which includes the sale of a 10% stake to a strategic investor, will also allow Vale to grow “inorganically” as the industry enters a consolidation phase, Bartolomeo said. But while there’s plenty of interest from prospective partners, the company will proceed with or without a partner, Bartolomeo said. Neither is taking the base metals unit public a “definitive option”.
“Obviously an IPO down the road is a liquidity event you could pursue,” the CEO said. “But the fundamentals why we brought Mark in is to help us on execution. There are many ways of liquidity.”