On the overall macro factors for iron ore and thus Vale and CLE which I have been thinking about in terms of current the narrative about China's slowing demand for iron ore and China being Vale's largest iron ore customer, I've gone back to an interview with Vale's former CEO in the AFR Dec 23 which is after CLE had purchased iron Bear but apparently 4 months before April 24 which is the published date when VALE was on board with CLE going through operations with CLE at their pilot plant.
Interesting points covered in the article which are confirmed elsewhere:
1. Vale has put its base metals business into a separate corporate structure with stand alone management albeit controlled by Vale as a result of the parent company focusing even more on its iron ore business
2. Vale is scaling back sales to China and focusing more on middle east and other markets.
3. Saudi Arabia has bought a 10% share in Vale's base metals business in a move to diversity away from oil and Vale and Saudi Arabia have a JV to create a 'green steel mega hub'.
3. Former CEO stated to interviewer in the Dec 23 article that that Vale 'will consider options to capitalise Vale Base Metals in two to three years, when projects in Canada, Brazil and Indonesia start maturing.'. At the time of the article, Vale had no projects in Canada which means that this must have been a reference to iron bear which means that iron bear was part of Vale's long term plan back in December 23 which was just prior to their JV entered into in Jan 25 with Saudi Arabia to create the green steel mega hub which was the subject of an MOU between Vale and Saudi signed in October 2022 which I think is after CLE purchased iron bear although maybe this last connection is a stretch.
This all suggests to me that the iron bear resource is deeply integrated into VALE's business model over the coming years and has been since at least December 23 and possibly as early as 2022.
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