Controlled by Appian funds, Vale Verde focuses on ore processing
12/05/2024
Chinese mining group Baiyin Nonferrous is acquiring Brazil’s Mineração Vale Verde, owned by British private equity manager Appian Capital Advisory, Valor’s business website Pipeline learned. The mining company operates the Serrote mine in the state of Alagoas, specializing in copper concentrate production.
The acquisition will be executed through the purchase of stakes in AMH 2, Appian’s investment vehicle, and Serrote Participações—both the owners of Mineração Vale Verde and owned by Appian-managed funds.
The deal is pending approval from Brazil’s antitrust regulator, the Administrative Council for Economic Defense (CADE), and the Chinese government. People familiar with the matter expect the deal to be finalized early next year.
Appian took over Mineração Vale Verde in 2021 and is responsible for developing the Serrote project in Craíbas, located in the hinterland of Alagoas. The project includes building a facility for ore processing and copper concentrate production.
Since the project’s launch, 271,400 dry metric tonnes (DMT) of copper concentrate have been exported, with 74,000 tonnes shipped this year through October. In the first four months of this year, more than 32,000 tonnes of copper concentrate were shipped to China.
Copper is one of the metals with projected demand growth, driven by its use in energy transition technologies, such as electric vehicles, batteries, wind turbines, and solar panels.
The deal marks Baiyin’s first operation in Brazil. The group specializes in mining, smelting, and the production and sale of various non-ferrous metals in China, including copper, zinc, lead, gold, and silver.
Appian Capital has other operations in Brazil, including Atlantic Nickel (ATN), a nickel sulfide producer in southern Bahia, and a graphite production project in the same state.
When contacted by Pipeline, Appian stated that, as the largest private equity investor in metals and mining globally, it “constantly evaluates opportunities to optimize its portfolio and maximize financial returns for investors but does not comment on ongoing sales processes.” The Chinese group Baiyin did not respond to requests for comment.
By Silvia Rosa , Pipeline — São Paulo
Source: Valor International