Vale has a Saudi suitor: Saudi Arabia’s sovereign wealth fund the Public Investment Fund (PIF) is the leading bidder for a stake in Brazilian miner Vale’s nickel and copper operations, Bloomberg reports, citing people with knowledge of the matter. PIF is reportedly seeking to acquire a 10% stake in Vale’s base metals unit, they said, estimating the stake’s value at c.USD 2.5 bn.

What we know: The PIF is currently in advanced talks with Vale over the minority stake, the sources said, adding that deliberations are still taking place. Negotiations could collapse or another bidder could emerge, they added. The Saudi wealth fund could execute the transaction through the recently established joint venture with the country’s leading mining company Ma’aden. The JV aims “to initially invest in iron ore, copper, nickel, and lithium as a non-operating partner taking minority equity positions,” a statement by the companies said at the time. It is reportedly prepared to deploy over USD 15 bn of capital for investments in the coming years.

And they are not alone in the race: The PIF is expected to beat other bidders vying for the minority stake, including Japan’s Mitsui & Co and the Qatar Investment Authority, the sources said.

REMEMBER– Copper, cobalt, nickel, and lithium — critical minerals for EV and battery storage production — are expected to see a massive jump in demand in the coming years as countries roll out their plans for energy transition.

All under a Saudi push: Saudi Arabia aims to become a global hub for green metals critical for energy transition under efforts to diversify its economy away from oil. This includes significant amounts of uranium and titanium discovered in the country, according to officials. KSA says it has untapped metals and minerals — including copper, zinc, phosphate, and gold — collectively worth USD 1.3 tn.

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