SAO PAULO - Brazilian miner Vale said on Tuesday it concluded the sale of 10% of Vale Base Metals to Manara Minerals for $2.5 billion, according to a securities filing.

Vale and Manara Minerals, a joint venture between Saudi Arabian Mining Company, known as Ma'aden, and Saudi Arabia's Public Investment Fund, signed last July a binding agreement for the deal.

Vale also said on Tuesday a previous agreement with U.S.-based investment firm Engine No. 1, under which Engine would own a 3% equity stake in Vale Base Metals, has not advanced.

"Following further negotiations in recent months, both sides have agreed not to move forward with the previously agreed terms and conditions but remain open to future partnerships", Vale said about the talks with Engine.

(Reporting by Andre Romani; Editing by Steven Grattan and Sandra Maler)