Brazilian mining company Vale SA (VALE, VALE5.BR) said Monday it has sold its 61.5% stake in kaolin producer Cadam SA to KaMin LLC, a privately owned U.S. company, for $30.1 million.
The sale marks Vale's exit from the kaolin business, as part of a move to optimize its assets portfolio, the company said in a statement.
Cadam is a kaolin producer that operates an open-pit mine in the state of Amapa, and a processing plant and a private port, in the state of Para, all in north Brazil. The mine and the plant are linked via a 5.8-kilometer pipeline.
Kaolin, a type of clay, is an industrial mineral used in production of ceramics, refractory bricks, pigments and coatings.
Vale, which also sold kaolin producer Para Pigmentos SA in 2010, said it will receive payment for the sale of its controlling stake in Cadam over five years.
Vale in recent years has increased investments in metals including nickel, copper and coal, as well as in the logistics and energy areas, diversifying from iron ore, which still forms the major part of its business.
-By Diana Kinch, Dow Jones Newswires, 55 21 7564 4495 email@example.com