Vale may create listed fertilizer company

* New firm would unite assets in Fosfertil, Bunge sites

* Phosphate part of plans to diversify from metals mining

* Further expansion plans for new Peru phosphate mine

By Denise Luna

RIO DE JANEIRO, Aug 6 (Reuters) - Brazilian mining giant Vale (VALE5.SA)(VALE.N) may combine assets in the fertilizer operations of Bunge and Fosfertil to create exchange-listed Vale Fertilizantes, Chief Executive Roger Agnelli said on Friday.

Vale, the world's largest iron ore miner, has been moving into fertilizer as part of a strategy to diversify its revenue stream away from metals and minerals. It is betting on the prospects of the fertilizer sector as agricultural output rises in Brazil.

In May, Vale told regulators it had sealed the purchase of 58.6 percent of the capital of Fosfertil belonging to Bunge (BG.N), Norway's Yara (YAR.OL), Heringer (FHER3.SA) and Fertipar and acquired assets in Bunge Fertilizantes. The purchases totaled $4.7 billion.

Agnelli said bringing the assets together in one firm would increase their efficiency.

"It's a long-held wish by all of the shareholders to have one plant beside the other, one mine close to the other. There are many synergies between the two companies and that's positive for all," Agnelli told reporters at an event in Rio where Vale is based.

He said Vale Fertilizantes would have production capacity of 6 million to 7 million tonnes of phosphate in Brazil. Existing shareholders would likely be entitled to shares in the new firm, though exact details had not yet been defined.

In early 2009 it also spent $850 million on phosphate, or potash, assets in Argentina and Canada and has more in Mozambique.

Separately, Agnelli said the Bayovar phosphate mine in Peru, which it inaugurated on Thursday, would have a third expansion phase, raising output to 7.9 million tonnes by 2015 from 3.9 million tonnes now.

Vale's shares, traded on the BM&F Bovespa stock exchange in Sao Paulo were trading 0.16 percent higher early on Friday at 44.17 reais ($25.19). (Reporting by Denise Luna; Writing by Peter Murphy, editing by Dave Zimmerman)