NEW YORK (TheStreet) -- Shares of Brazil's Vale SA (VALE) are down 1.15% to $8.63 after it was reported that the company is considering listing part of its global base metals business, sources told Reuters, as the miner looks to fund capital projects amid a collapse in iron ore prices.
The world's top iron ore producer is likely to retain a majority interest in the new entity if it proceeds with the plan, sources said, according to Reuters.
Vale could outline the plan to list a new entity in Toronto and London as early as Tuesday at an investor day event being held in New York, one source told Reuters.
The second source said there had been significant discussion inside Vale about listing the base metals assets, which have fared better than its iron ore business due to steadier prices, Reuters reports.
Vale's iron ore business contributed 62% of the company's gross revenue in the third quarter, but the miner has been affected alongside its peers by falling iron ore prices this year which have slumped to five-year lows below $70 a ton.
Separately, TheStreet Ratings team rates VALE SA as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: