trending Market Intelligence /marketintelligence/en/news-insights/trending/g6PUdIcS-mvRh6g3amPmzg2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Vale reaffirms plan to divest US$10B worth of core assets to slash debt

Greenhouse gas and gold mines Nearly 1 ton of CO2 emitted per ounce of gold produced in 2019

Essential Metals & Mining Insights - September 2020

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020

Vale reaffirms plan to divest US$10B worth of core assets to slash debt

Vale SAis standing by its plans to sell off US$10 billion worth of core assets in a bidto strengthen its balance sheet, despite a recent rise in the prices of commodities.

The Brazilian mining heavyweight outlined its plan to reduceits net debt via the "completion of potential transactions with core assets"in 2016-17 in a May 10 presentation at the Bank of America Merrill Lynch GlobalMetals, Mining & Steel Conference in Miami.

Vale is also targeting the divestment of US$4 billion to US$5billion worth of noncore assets this year, which Reuters reported May 10 was downfrom the previously flagged US$4 billion to US$5.5 billion after the company its 40% stakein bauxite producer Mineração Riodo Norte SA.

In October 2015, NorskHydro ASA and Vale entered into a letter of intent for the potentialtransaction, but terminated negotiations in May because they could not agree oncommercial terms.

The move is aimed at simplifying the portfolio, Vale noted inits presentation.