Vale SA (VALE5) agreed to lease a potash mine owned by Petroleo Brasileiro SA (PETR4) for 30 years to set up a fertilizer project worth $4 billion, newspaper Valor Economico reported, citing sources it didn’t identify.
Vale will pay the Brazilian state-controlled oil company a percentage of the revenues generated by the project, located in the Brazilian northeastern state of Sergipe, the Sao Paulo-based newspaper said. The board of Vale will have an extraordinary meeting to approve the agreement today and the contract between both Rio de Janeiro-based companies may be signed as early as tomorrow, Valor said.
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