NEWS
Iron Ore  

Vale expects jump in base metal performance in 2020

Brazil's Vale, the world's top iron ore producer, is expecting major improvement in the performance of its base metals division in 2020 but said that production cuts would remain in effect this year and next while prices remain low, executives said on Thursday.

Chief Executive Fabio Schvartsman forecasts a major jump for the segment in 2020. Base metals are non-precious metals that contain no iron.

"We are expecting a significant jump in results for base metals in 2020 due to the likely recovery in prices, reduction in costs, and jump in volume that the company will have in 2020," Schvartsman said in a call with analysts.

Schvartsman also said, without offering further detail, the company is seeking out small high-return acquisitions related to the miner's current assets.

The comments came a day after Vale reported third quarter results that fell short of expectations, because of a $250 million drop in base metals operating profit, in addition to a weaker real currency.

The base metals forecast represented a shift, after Schvartsman said in February that the company was seeking to make its base metals unit grow to 30 percent of its financial results by the end of 2019, in a bid to diversify beyond its massive iron ore business.

On Thursday, Vale Chief Financial Officer Luciano Siani said the company's net debt would fluctuate around a target of $10 billion but not go below that level. Vale has managed to reduce its net debt to $10.7 billion, still above the $10 billion goal Schvartsman had set for the middle of 2018. Heavy spending on Vale's flagship S11D mine, which churns out rich grades of ore, drove up Vale's debt in recent years, at a time iron ore prices slid sharply.

Schvartsman said iron ore from S11D would be used for blending and would not put pressure on market supply. He added that Chinese demand had been stronger than expected and that the ore division will perform well in coming quarters.

China's campaign to clean its skies by clamping down on polluting steel mills has fueled a need for high-grade iron ore to boost productivity and limit emissions, opening the door wider for suppliers of better quality ore like Vale to the world's biggest buyer.

Schvartsman said Vale will have news on the New Caledonia nickel mine soon. The company has been seeking to find a partner to invest in it by year-end.

Over-budget and years late when it finally started up in 2010, the New Caledonia project accumulated nearly $1.3 billion in losses between 2014 and 2016.

News No: 2454
Date: 2018/10/26 - 20:56
News Source: MINING.COM

base metal  iron ore  Brazil 

Comments:

Leave a Comment:

   
   
   
 

Iran: Iron Ore Exports to India Jump Three Fold in Oct'18

According to the data maintained by SteelMint, Iran has exported 1.67 MnT iron ore via bulk shipments in the seventh month of Iranian year (during 23rd Sep- 22nd Oct'18).
 

Metso to deliver comminution solutions to NLMK Group in Russia

Metso will deliver three grinding lines including spare parts and supervision to NLMK Group's Stoilensky GOK iron ore production plant in southern Russia.
 

China Minmetals signs 20m tonnes iron ore purchase agreement with Brazil's Vale

State-owned metals and mineral trading firm China Minmetals signed a 20 million tonne iron ore purchase agreement with Brazilian mining giant Vale on Tuesday.
 

Essar Steel: Iron Ore Sourcing Up 10% in Sept'18

Essar Steel - an integrated steelmaker with steel making capacity of 10 MnT p.a. recorded increase in total iron ore & pellet sourcing for the month of Sep'18. The sourcing stood at 0.88 MnT in Sep'18, up 10% M-o-M as against 0.81 MnT in Aug'18.
 

Chinese Steel Market Highlights - Week 42, 2018

Spot iron ore fines prices moved up on weekly basis, demand for pellets remained on lower side resulting in reduction in sharp decline of USD 10.5/MT in spot pellet premium.
 

Turkey: Iron Ore Import Drops 11% in Aug’18

The tenth largest importer of Iron ore, Turkey has recorded decline in iron ore imports for the month of Aug’18. The imports recorded at 1.08 MnT in Aug'18, down 11% as against 1.22 MnT in July'18. The Y-o-Y imports witnessed a rise of 26% in Aug'18 as against 0.86 MnT in Aug'17.
Upcoming Events
Find a Job !
Tenders
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners