Vale has entered into an agreement with Hankoe FIP to buy innovative iron ore beneficiation technology provider, New Steel, for $500 million.

New Steel currently owns patents of dry processing concentration (fines dry magnetic separation) in 56 countries, which is expected to support Vale’s development of high-grade pellet feed initiatives.

Vale said the transaction was expected to close in 2019, subject to certain conditions precedent, including approval by antitrust authorities in Brazil.

One project that is expected to benefit from this acquisition is Vale’s 20 Mt/y Southeastern System pellet feed project, the company said.