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Vale S.A. (VALE)

  • Sep. 12, 2012, 5:12 PM
    Vale (VALE) says it will delay projects in the "conceptual" phase of development because of the economic climate. The Brazilian iron ore producer has already said it is postponing its $3B Kronau potash project in Canada, and will announce its investment plan in December, which will reflect "the new economic scenario."
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  • Sep. 11, 2012, 2:51 PM
    The long-awaited cutback in Chinese iron ore production may be starting as an unnamed official at Minmetals Luzhong says his company is digging up less and other miners have halted altogether. What the market may really need are the gorillas - VALE, RIO, BHP - to not just slow expansion plans, but to slash production.
  • Sep. 6, 2012, 5:08 AM
    Peabody (BTU) scraps the $500M sale of a thermal-coal mine in Queensland after receiving no worthwhile bids, Reuters reports. The move adds to nearly $15B of deals shelved or postponed in Australia this year as commodity prices drop. Other deals set to be pulled include Vale's (VALE) $500M sale of a mine and BG's sale of a $2B stake in an LNG project.
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  • Sep. 4, 2012, 2:16 PM
    Vale (VALE -3%) will set aside an additional 1.1B Brazilian reais (~$542M) to cover potential losses related to a tax and royalty dispute with the government, determining it likely will lose an attempt to deduct the cost of transportation from the value used to determine royalty payments on minerals. Vale had previously set aside 314M reais for the dispute.
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  • Sep. 4, 2012, 7:33 AM
    Australia's Fortescue joins rivals BHP and RIO in announcing slashed capital spending plans amidst sliding demand and pricing for iron ore. The move comes just days after the company's CEO said all was well in the business and the company expected to triple production within a year. Shares fell 4.2% in Sydney.
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  • Aug. 31, 2012, 12:34 PM
    Vale (VALE +2.5%) says it will sell 10 large ore carriers for $600M to Turkish company Polaris Shipping as part of its strategy to optimize its asset portfolios. The company says the sale preserves its capacity of maritime transportation of iron ore, since the vessels will be chartered back by Vale under long-term charter contracts, thus avoiding ownership and operational risks.
  • Aug. 29, 2012, 8:17 AM
    "Watching this market is like watching the Titanic," writes a commodity broker of iron ore, off another 7% today to just $90/ton. The plunge will put to the test to the theory (also hopefully put forth in today's Joy Global earnings release) that Chinese ore production will come to a halt below $120/ton. Since when has oversupply/low prices caused the Chinese to cut back?
  • Aug. 27, 2012, 8:19 PM
    Brazilian mining company Vale (VALE) says it's resumed production at its Carborough Downs coal mine in Queensland, Australia. The mine had been closed since May31, following the detection of abnormal levels of carbon monoxide in the mine. No employees were adversely affected and no environmental damage occurred from the incident. In Q2, the mine produced 82K metric tons of metallurgical coal. Shares +0.4% AH.
  • Aug. 24, 2012, 11:37 AM
    Bookmark this chart of iron ore prices, as it's becoming one of the more widely-followed global indicators. They've fallen another 1.9% today to just $100/ton, well below the line-in-the-sand price of $120 - the level at which Chinese producers would supposedly stop producing.
  • Aug. 23, 2012, 6:45 PM
    Even as Vale (VALE) shares slide near a 52-week low, Citi's Alexander Hacking says it's not yet time to buy, even as it is his preferred LatAm metals and mining stock. Annualized operating cash flow is sub-$10B vs. Vale’s proposed $27B of capex and dividends in 2012; Citi sees the biggest challenge as Vale’s spending, not the drop in iron ore prices.
  • Aug. 23, 2012, 3:13 PM
    Brazil's national development bank approves 3.88B reais ($1.9B) in financing for Vale (VALE -3.6%) to expand its transport infrastructure in the Brazil states of Maranhao and Para, where the company's massive Carajas iron ore mine is located. But investors are unmoved, sending shares lower as iron ore prices tumble on slower Chinese economic growth.
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  • Aug. 22, 2012, 2:38 PM
    BHP's decision to postpone its Jansen potash project and Vale's (VALE) move to shelve its Kronau project amid weakening global demand for commodities and falling resource prices expose the risks of Canada’s heavy reliance on resource extraction. Saskatchewan faces losses of potential tax revenue every year a project flounders, and the effects could ripple across the country.
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  • Aug. 22, 2012, 8:53 AM
    Forget Dr. Copper (which hasn't been a relevant moniker since Rickey Henderson played for the Yanks), it's iron ore which is the far better economic bellwether, and its price is collapsing. (see also)
  • Aug. 22, 2012, 7:09 AM
    Prices of Chinese steel and its key ingredient - iron ore - continue to fall, now at their lowest levels since 2009. The combination of steel mills ramping up production in the face of a slowing economy is proving toxic. One report says the mills are beginning to default on supply contracts or have deferred shipment of up to 4M tons of iron ore this month. It's a start.
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  • Aug. 22, 2012, 12:08 AM
    Iron ore output in China dives 8.1% in July, the steepest July decline since 2008. Yes, the economy is slowing, but plunging shipping costs and iron ore prices make it cheaper to get the good stuff from Brazil rather than dig up lower-grade ore in China. VALE isn't complaining.
  • Aug. 17, 2012, 3:57 PM
    Saskatchewan's economy minister expects BHP Billiton (BHP -0.2%) to proceed with construction of its potash mine, and does not expect BHP to replicate Vale's (VALE) delay of its own project in the Canadian province. BHP’s mine at Jansen would be the world’s largest potash mine, capable of producing 8M metric tons annually, but analysts have suggested BHP is weighing a delay.
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Company Description
Vale SA is a metals & mining company. It produces & supplies iron ore, iron ore pellets, nickel, manganese ore, ferroalloys, copper, coal, phosphates, potash, cobalt & others.
Industry: Steel & Iron
Country: Brazil