Muscat – Global mining giant, Vale S A, through its subsidiary Vale International S A, has signed a binding agreement with a subsidiary of Apollo Global Management (Apollo), a leading alternative asset management and retirement services provider, for a 50% equity stake in Vale Oman Distribution Centre (VODC) for US$600mn.

The transaction is expected to close by the end of the second half of 2024, subject to customary regulatory approvals. The sale will maximise returns and monetise Vale’s existing assets around the world.

VODC operates a maritime terminal in Sohar Industrial Port, featuring a large deep-water jetty and an integrated blending and distribution center with a nominal capacity of 40mn tonnes per year (Mtpy). Under the agreed terms, Vale will continue to exert significant influence over VODC operations under a joint control structure with no effect on the organisational structure or work force.

Nasser al Azri, Chief Executive Officer of Vale Oman, said, “The deconsolidation of Vale Oman Distribution Centre signifies an important step forward that will enable us to achieve our ambitious long-term growth and expansion plans in the sultanate. It underscores our commitment to supporting the nation’s economic diversification strategy and empowerment for social development.”

He went on to explain, “Optimising capital allocation through an asset-light operating model provides greater efficiency and agility that strengthens our competitiveness and strategic position. This will enable us to navigate market dynamic, capitalize on emerging opportunities and solidify our leadership in the industry.”

Vale will retain 100% ownership and control of Vale Oman Pelletizing Company (VOPC), which plays a crucial role in the production of high-quality iron ore pellets used in steel production and other industries, such as construction, manufacturing and technology.

Over the last 17 years, Vale has significantly contributed to the sultanate’s evolving economic landscape and delivered sustainable social value by developing and exploring opportunities that generate jobs, train local talent and drive the local supply chain development. This latest strategic transaction will reinforce the nation’s importance in the global mining industry.