Vale cuts iron ore forecast, as dam burst adds to low margin cutbacks

|About: Vale S.A. (VALE)|By:, SA News Editor

Vale (NYSE:VALE) lowers its iron ore production forecast for next year to 340M-350M metric tons, compared with earlier guidance of 376M tons.

The likelihood of missing guidance was flagged in July as slumping metal prices prompted efforts to lift average ore quality; since then are new reductions related to the dam collapse at its Samarco joint venture with BHP Billiton that halted output and damaged infrastructure used by another Vale mine.

Vale, which is hosting its annual investor day event at the NYSE today, expects to produce 340M tons of iron ore this year.

Vale -0.6% premarket.

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