The week in emerging markets, including our most read, five things we have learned and some long reads for the weekend. Plus the week in a chart: Brazil’s Vale. Read more
If it’s not iron ore, then Vale is not interested, it seems. In its latest attempt to slim down and rid itself of non-core assets, the Brazilian miner said on Monday that it will sell at least half of its stake in Norway’s aluminium producer Norsk Hydro. The sale could fetch as much as $1.1bn. Read more
Who loves China? Vale certainly does
The rebound seen in the Chinese economy during the third quarter has provided a much needed boost to Vale’s bottom-line.
Following a disastrous Q2, the Brazilian miner said on Wednesday that profits for the three months to the end of September have more than doubled thanks to stronger demand from China, higher commodity prices and a recovery in the Brazilian real. Read more
Ferrexpo, a London-listed Ukrainian iron ore miner, said on Wednesday it had bought a 14.4 per cent stake in Brazilian mining group Ferrous Resources do Brasil for $80m.
The announcement marks Ferrexpo’s first significant expansion outside Ukraine and comes weeks after Kostyantin Zhevago, its majority owner, said the company was on track to continue supplanting its Brazilian rivals – including Vale, the world’s biggest iron ore exporter – as a supplier to Asian steelmakers. Read more
By Eric Platt from FastFT
First it was Gol, Brazil’s biggest airline. Now, its Vale, the country’s biggest miner, that has been hit by the weakening real.
Vale said profits declined 84 per cent from a year earlier to $424m, or 8 cents a share, as a weaker real, as well as lower commodity prices, took their toll. Read more
After gruesome 16-year-long civil war, Mozambique has got on with the arduous task of rebuilding the country.
The African state is now open for business, helped by political stability. It’s rich mineral resources have been a draw card for leading global miners. But big hurdles remain, especially the lack of infrastructure which has been a huge stumbling block for miners. And despite the government’s attempts at addressing the problem, it is still affecting business operations. Just ask Rio Tino, and Brazil’s Vale. Read more
When Dilma Rousseff emerged from a meeting with Argentina’s Cristina Kirchner last Thursday, saying that Vale would soon reach an agreement over its $6bn Rio Colorado potash project in the country, some feared the worst.
Local media took it as a sign that she wanted the Brazilian miner to stick by the cash-draining mine, which Vale ditched in March after rampant inflation and exchange rate controls doubled the project’s costs. Read more
Argentina’s government might as well be humming Frank Sinatra’s “My Way”.
After lambasting Vale’s “unilateral” decision to dump a $6bn potash project in Argentina, it seems to be entertaining the idea of stripping Vale of the concession and piloting the project itself, probably bringing in new partners. (Mubadala, an Emirates investment and development has been mentioned in the media as has an unnamed Canadian-Australian company.) Read more
Vale, the Brazilian miner, has not entirely pulled the plug on its $6bn Río Colorado potash project in Argentina. But after a board meeting on Monday it said the project was definitely not coming out of the freezer – where it has been since December – any time soon. Read more
The weather gods have been kinder to Vale than to Brazil’s government, it seems. Low rainfall across Brazil at the end of last year may have dried up the country’s reservoirs and brought it to the brink of an energy crisis this month. But it has done wonders for Vale’s production.
The miner on Friday posted better-than-expected iron ore output for the fourth quarter, partly as a result of lighter rainfall than normal in the Amazonian state of Pará where the company’s vast Carajás mining development is located. Read more
Vale is wasting no time getting on with its cost reduction plan. As most people were still emerging from a post-Christmas stupor, the Brazilian mining company this week announced another two assets up for the chop. Read more
This week just keeps getting worse for Vale.
After warning shareholders on Wednesday of unexpected tax charges of $448m, the Brazilian mining giant stunned the market late on Thursday with news of a $4.2bn writedown on its nickel and aluminium assets. Read more
If you think you’ve had a bad day, spare a thought for poor old Vale.
The Brazilian mining giant on Wednesday announced tax losses of nearly R$1bn ($483m) relating to cases in Brazil and Switzerland.
Early in the morning, Vale said it had settled a dispute with the Swiss authorities over what it called “differences in interpretation” of the federal tax breaks granted to Vale’s international business in 2006. While the company had already set aside $37m for the Swiss claim, it said it would now have to pay almost six times that amount – 212m Swiss francs ($232m). Read more
What price a reputation? Earning a good one takes time. Losing it can take a moment. So some of the biggest companies based in Brazil, Russia, India and China may not be pleased to read a report issued this week by RepRisk, a consultancy that calls itself “the leading provider of business intelligence on environmental, social and governance (ESG) risks”. Read more
It would have been easy to miss. On page 18 of Vale’s 38-page results presentation released late on Wednesday, the mining company gave the following information about the status of its project in Simandou, Guinea: Scope and schedule under review.
It looks like a minor detail, but in reality it was Vale’s own special way of saying that it was putting on hold its $1.3bn Zogota mine in Simandou, the west African country’s richest iron ore deposit. The mine was meant to have started output by the end of 2012. Read more
It’s another one of those very Brazilian tales – the saga of Vale and the unpaid royalties.
The mining company has been at loggerheads with the tax authorities for years over disputes about unpaid levies. However, the negotiations seemed to take a turn for the worse on Tuesday after Vale announced it would set aside an additional R$1.1bn ($542m) to cover potential losses. Read more
Brazil’s Vale is nothing but optimistic.
The mining company’s net income slumped almost 60 per cent to $2.66bn in the second quarter from the year earlier – the worst results in two years.
The chief financial officer has just announced this week he is resigning and global iron ore prices have fallen to a nine-month low as Chinese growth slows.
But no need to panic, apparently. Read more
Vale is not wasting any time slimming down its operations, it seems.
On Monday the company announced it had sold its Colombian thermal coal assets for $407m to Goldman Sachs’ Colombian Natural Resources. Read more
When Murilo Ferreira took over as the chief executive of Vale about a year ago and promised more efficiency nobody paid much attention.
Firstly, it’s the kind of thing CEOs like to say a lot. Secondly, investors at the time were far too busy being alarmed about the circumstances that put Ferreira in that position. Would the government continue to steer the company according to its needs? Read more
Will the nationalisation of YPF be good or bad for investment in Argentina? For those in doubt, here’s one sign that the answer is “bad”. Vale, the Brazilian mining giant, is preparing a review of its $5.9bn Argentine potash project to be presented to its board next month, Bloomberg reports.
“We are very concerned about the political situation and their whole environment in Argentina,” Bloomberg reported Murilo Ferreira, chief executive, as saying in a conference call with analysts. Vale is not alone. Read more