Archive | Vale

UPDATE 2-Brazil’s Vale slumps as ore price outlook, profit disappoints – by Guillermo Parra-Bernal and Marta Nogueira (Reuters U.K. – April 27, 2017)

http://uk.reuters.com/

Shares in Vale SA slumped the most in two weeks on Thursday, as executives signaled lackluster trends for iron ore prices this year and investors reacted to a first-quarter profit miss with disappointment.

Preferred shares, world No. 1 iron ore producer Vale’s most widely traded class of stock, shed as much as 4 percent. The decline thwarted a recovery in the stock that had made gains this week on expectations Vale would report a near record quarterly profit.

On a results conference call, company executives said supply and demand of the main ingredient for steel look balanced, helping prices stay at $70 reais per tonne or less. In February, Vale’s head of ferrous minerals Peter Poppinga expected prices hovering around $80 a tonne this year. Continue Reading →

Vale’s first quarter profit lower than expected as rains hurt iron ore output – by Cecilia Jamasmie (Mining.com – April 26, 2017)

http://www.mining.com/

Brazil’s Vale (NYSE:VALE), the world’s No.1 iron ore miner, logged Thursday net income for the first quarter that missed estimates, reflecting the impact of heavy rains that hampered output in the so-called northern system, which groups the Carajás, Serra Leste and S11D mines in northern Brazil, as well rising financial expenses.

The Rio de Janeiro-based company reported a net income of $2.5 billion, no less than a billion off the average consensus estimate of $3.325bn in profit. It was, however, the largest since the first quarter of 2014, according to Vale.

The miner had already announced a production record in iron ore of 86.2 million tonnes for the January-March period, which it credited to the ramp-up of its massive S11D mine in Pará, and the Itabirito project, in Minas Gerais. Continue Reading →

[Canada] The Power 50: Who has the influence, the connections and the cash to get their way in the world of business? (Globe and Mail/Report on Business – April 26, 2017)

http://www.theglobeandmail.com/

We pull back the curtain on the financiers, scions, politicians and CEOs—plus a few bureaucrats and even one hip-hop star—who wield true power in Canada

Only one miner makes the list, Vale Canada’s Jennifer Maki. – Stan Sudol

1. Paul & André Desmarais | Co-CEOs, Power Corp.

If there is a key to the Desmarais family’s formidable wealth and influence, it is this: entree. Paul Desmarais Sr. possessed astonishing business acumen. But it was his ability to cultivate the crème de la crème in politics and finance that elevated him to the highest levels in North America, Europe and China. He met with Deng Xiaoping in Beijing; invited Bill Clinton and George W. Bush to his estate in Charlevoix, Quebec; and received the Grand Cross of the Legion of Honour from Nicolas Sarkozy in 2007.

Most importantly, Desmarais, who died in 2013, meticulously groomed his sons, Paul Jr. and André, for succession. In 1996, he named “the boys”—now in their early 60s—co-CEOs of Power Corp. Since then, Power has quintupled in value. How have they done it? As magnate Peter Munk said in 2008: “The boys got introduced to his contacts. They were educated well, they married well and they’ve behaved.” Continue Reading →

Vale’s iron ore output just hit another record – by Cecilia Jamasmie (Mining.com – April 20, 2017)

http://www.mining.com/

Brazil’s Vale (NYSE:VALE), the world’s No.1 iron ore miner, said output of the steelmaking material hit a fresh record high in the first quarter as its massive S11D mine in the Amazon continued to ramp up.

The Rio de Janeiro-based company said iron ore production jumped 11% to 86.2 million tonnes in the January-March period, compared to the same quarter a year earlier.

The figure however, was 6.7% lower than total iron ore output of 92.386 million tonnes in the prior three months, and the company said it might restrain supply even further in coming months to support prices if necessary. For now, however, the mining giant reiterated its output guidance for the year of between 360 million and 380 million tonnes of seaborne. Continue Reading →

BHP-Vale Mine Restart Hinges on Deal With Small-Town Mayor – by R.T. Watson (Bloomberg News – April 13, 2017)

https://www.bloomberg.com/

A 34-year-old mayor of a small Brazilian city stands between a giant mine and its plans to resume operations after a disastrous dam collapse.

By refusing to sign off on the use of river water, Leris Braga is delaying permit approvals that would allow the BHP Billiton Ltd.-Vale SA iron venture to rehire thousands of workers and start generating cash again for debt repayments. While that makes Braga a villain for bondholders and unemployed locals, he says he’s only trying to get the company to meet its responsibilities.

“The city of Santa Barbara isn’t going to receive one cent,” he said in an interview from his offices in the more than 300-year-old mining town. “I’m not trying to make some exchange for the document they need.” Continue Reading →

Role model for Sudbury workers mourned – by Jim Moodie (Sudbury Star – April 12, 2017)

http://www.thesudburystar.com/

Ronnie Lepage of Wahnapitae was a veteran operator of heavy equipment and a model and guide for many young workers. So it was especially shocking to family members and colleagues when the 59-year-old was pinned under a dump truck last Thursday on Vale property in Copper Cliff, dying subsequently in hospital from his injuries.

Working around big vehicles and other equipment “is something we’ve done all our lives,” said older brother Richard, 63. “He and I, and the other brothers, we’ve all done it forever. An accident like that is almost unheard of.” Younger brother Todd, 54, said it was Ronnie’s own vehicle, which he was driving for contractor Cecchetto and Sons, that wound up on top of him.

“It was a freak accident,” he said. “Ronnie was always safe, and a mentor to other young operators. I know a few young guys he works with and they’re freaked right out over it, thinking how could it happen to somebody like him. But that’s all it takes — you could do something a thousand times and that one time it doesn’t go right.” Continue Reading →

Vale turns to experienced Brazilian manager in Schvartsman – by Joe Leahy (Financial Times – March 28, 2017)

https://www.ft.com/

São Paulo – Fabio Schvartsman, the new chief executive officer of Vale, the world’s largest iron ore mining company, is one of Brazil’s most experienced managers when it comes to running vast operations.

His present company, Klabin, the largest paper and cardboard company in Latin America’s biggest economy, controls 235,000 hectares of eucalyptus and pine plantations and 210,000 of native forest.

But that did not make his appointment to replace Vale veteran Murilo Ferreira, announced late Monday, any less of a surprise to the market. “We must admit that this name comes as a surprise to investors — which had been speculating [on] different names,” said Leonardo Correa, analyst with BTG Pactual. Continue Reading →

Vale makes final offer to office staff (update) – by Staff (Sudbury Star – March 30, 2017)

http://www.thesudburystar.com/

More than 200 office and clerical staff at Vale could hit the picket line Friday night after the company put forth its “final offer of settlement” to USW Local 2020-05 on Wednesday.

Stuart Harshaw, vice-president of Vale’s Ontario operations, informed staff in a letter that the union’s bargaining committee would present the settlement proposal at a meeting Wednesday evening and voting would take place that night and Thursday morning.

The collective agreement between Local 2020-05 and Vale is set to expire at midnight on Friday. The final offer of settlement typically means the union’s leadership is not recommending its members accept the company’s offer. That occurs only when the two sides reach a tentative agreement. In his letter to employees, Harshaw said it’s now up to members to decide. Continue Reading →

Vale Indonesia to build $2 billion ferronickel smelter in Southeast Sulawesi – by Viriya P. Singgih (Jakarta Post – March 29, 2017)

http://www.thejakartapost.com/

Publicly listed nickel mine operator PT Vale Indonesia plans to build a US$2 billion ferronickel smelter in Pomalaa, Southeast Sulawesi. The construction of the new facility is initially slated for 2018, while the operation is expected to start in 2023.

However, the company—part of Brazilian mining giant Vale—is still waiting for the issuance of the forest area utilization permits and is in the process of revising the environmental impact analysis (Amdal) for the project.

It has teamed up with Japanese miner Sumitomo Metal Mining Co. Ltd. to develop high pressure acid leaching (HPAL) technology for the Pomalaa processing plant and is looking for another partner to help produce the ferronickel in the facility. It is also looking for a partner to build another ferronickel plant in Bahodopi, Central Sulawesi. Continue Reading →

Vale taps veteran executive Schvartsman as new CEO – by Guillermo Parra-Bernal (Reuters U.S. – March 28, 2017)

http://www.reuters.com/

SAO PAULO – Vale SA surprised investors with the appointment of Fabio Schvartsman as chief executive officer on Monday, choosing a commodities industry veteran to lead transformation of the world’s No. 1 ore producer into a company with dispersed share ownership.

Schvartsman, who has been the CEO of Klabin SA, Brazil’s largest paper and cardboard producer, for the past six years, had not figured in media reports as a potential replacement for CEO Murilo Ferreira. The departure of Ferreira was announced last month.

In a career spanning four decades, Schvartsman occupied key positions in companies such as fuel distribution giant Ultrapar Participações SA, phone carrier Telemar Participações SA and U.S. oil driller San Antonio International. Vale’s board picked him from a list prepared by executive recruiting firm Spencer Stuart. Continue Reading →

Iron Ore Takes a Battering as Bear Market Engulfs China Futures – by Ranjeetha Pakiam (Bloomberg News – March 22, 2017)

https://www.bloomberg.com/

Iron ore is getting battered. After rounds of warnings that this year’s rally may be overdone, the raw material is in retreat as doubts gather about the strength of demand in China as steel sells off and record port stockpiles put a spotlight on rising supplies.

In China, futures on the Dalian Commodity Exchange sank into a bear market as steel in Shanghai posted the longest run of declines this year, while the SGX AsiaClear contract in Singapore fell for a fourth day. Benchmark spot prices from Metal Bulletin Ltd. extended a loss below $90 a dry metric ton to the lowest since Feb. 9.

“Steel demand in China is clearly robust, but iron ore prices remain very elevated versus fundamentals, and it’s only a matter of time before they normalize to below $60,” Ian Roper, an analyst at Macquarie Group Ltd., said in an email. “We’ve had a negative view on prices for a while but they’ve held up longer than we expected.” Continue Reading →

Brazil dam disaster lawsuit against BHP Billiton, Vale, suspended – by Paul Kiernan(The Australian – March 17, 2018)

http://www.theaustralian.com.au/

A Brazilian judge has suspended a nearly $US50 billion ($A65bn) lawsuit against the mining firms responsible for the 2015 Samarco tailings dam disaster, as negotiations between the companies and authorities moved forward.

The decision came as part of a ruling in which federal judge Mário de Paula Franco Júnior approved a road map toward a final agreement between prosecutors and mining companies BHP Billiton (BHP), Vale, and their joint-venture Samarco Mineração.

Brazil’s government, which brought the lawsuit, was not immediately available for comment but in the past has indicated its main concern was reaching a settlement and safely restarting the mine. Continue Reading →

Top Iron Miners’ Cash Juggernaut Set to Survive Price Crash – by David Stringer (Bloomberg News – March 13, 2017)

https://www.bloomberg.com/

The world’s biggest iron ore miners will be able to withstand the expected plunge in prices because their race to cut production costs has dramatically lowered the industry’s margin pressure point, allowing them to keep fueling a cash juggernaut that’s revived the mining sector.

More than 90 percent of producers in the global seaborne market can generate profits at a benchmark price of $60 a metric ton, Adrian Doyle, a Sydney-based senior consultant at researcher CRU Group, said by phone. That compares with about 65 percent of suppliers able to avoid losses at the same price point three years ago, he said.

“There have been fantastic cost reductions in a lot of instances,” while producers have also been boosted by lower oil prices, Doyle said. “If we were thinking of a pressure point where we’d start to see a bit of stretching in the industry, previously it would’ve been around $60 a ton, now it’s closer to $50 a ton-to-$45 a ton to stress test everyone but the majors.” Continue Reading →

Letter outlines reasons for Stobie’s closure – by Harold Carmichael (Sudbury Star – March 11, 2017)

http://www.thesudburystar.com/

This is a copy of the letter sent by Vale’s Stuart Harshaw to Stobie Mine employees, which The Sudbury Star has obtained, about the mine’s closure.

“Hello everyone: I am writing to inform you that after more than 120 years and more ore produced than any other mine in the history of Sudbury, operations at Stobie Mine will be suspended later this year with the mine placed on care and maintenance.

As you know, our Base Metals business has been challenged for many years now due to the prolonged downturn in metals prices and ongoing challenges in the market. This has driven us to look closely at every aspect of our business globally to try to remain cash flow positive. Continue Reading →

End of the line for Sudbury’s Stobie Mine – by Harold Carmichael (Sudbury Star – March 11, 2017)

http://www.thesudburystar.com/

Harshaw also said Vale still believe in its Sudbury operations.”Vale is
committed to our future in Sudbury,” he said. “Over the past decade, we
have invested $4.7 billion to modernize and upgrade our operations.

Vale plans to shut down its long-running Stobie Mine by the end of the year, affecting some 230 employees. “This is a necessary decision but a sad one,” Stuart Harshaw, Vice-President of Ontario Operations, Vale Canada Limited said on Friday. “Stobie has a rich history and has been integral to our success for more than a century.

“However, after more than 100 years of operation, the mine is approaching the end of its natural life. The low grades at Stobie are no longer economical to mine in today’s challenging price environment.”

Harshaw also said Vale still believe in its Sudbury operations. Continue Reading →