Brazil's Vale to acquire copper metallurgy company

Brazil's mining giant Vale said Thursday it plans to acquire copper metallurgy company Paranapanema in a bid to become a top copper producer.

According to Vale, the world's biggest iron ore miner, the bid is subject to the purchase of at least 50 percent plus one common shares and will be applicable to all Paranapanema's shareholders.

If all Paranapanema shareholders decide to sell their stocks, Vale will acquire the company for 2.01 billion reais (1.14 billion U.S. dollars) at 6.30 reais (3.57 dollars) per share.

Vale's bid for Paranapanema is consistent with the company's strategic objectives. "The acquisition enables the development of Vale's copper projects," the company said.

The auction is expected to be held on Sep. 1.

Paranapanema is the leader in refined copper production in Brazil. Its assets include a copper smelter/refinery and three production plants of downstream copper. The company also controls Cibrafertil, which produces a phosphate fertilizer.

Mawuli believed that if financial support were available exporters could go into larger volumes of fruit processing and drying, currently at very low levels.

Source: Xinhua