Vale has entered into a definitive agreement to buy Ferrous Resources Ltd, a company that currently owns and operates iron ore mines closely located to Vale’s operations in Minas Gerais, Brazil. The purchase price is $550 million and the transaction is expected to occur in 2019, subject to various conditions precedent.

Reuters reports that Ferrous “has five mineral assets in the state of Minas Gerais’ iron quadrangle and one operation in Bahia state.

“Vale Chief Executive Officer Fabio Schvartsman had said during its last earnings call that the miner was looking for small high-return acquisitions with synergies with the miner’s current assets.

“In a meeting with investors on Tuesday, Schvartsman announced that Vale had decided to keep full ownership of its New Caledonia nickel mine and invest $500 million in it after previously vowing to find a partner for the venture.”