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

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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.