Vale cuts capex budget to lowest since 2010


Vale (VALE) announces a $14.8B capital spending budget for 2014, a third straight year of reductions as the iron ore miner focuses on boosting returns at existing operations.

The business plan for next year includes investments of $9.3B for new projects, $4.5B dedicated to sustain existing operations and $900M for R&D; Vale will focus 85% of its mineral exploration expenditures in Brazil, Canada, Australia and Peru.

Vale projects iron ore output to increase to 312M metric tons in 2014 from an expected 306M tons this year, 4.3% less than the 326M tons it was forecasting for 2014 a year ago; copper and nickel production each are seen gaining ~11%, but output for coal and potash is expected to drop.

Shares -0.6% premarket.

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