2011 investment target of Vale is challenging - Mr Guilherme
2011-07-08 10:34:46 [Print]
Reuters cited Mr Guilherme Cavalcanti CFO of Vale as saying that Brazilian mining company Vale, the world biggest producer of iron ore could see some of its ambitious 2011 investment plans running into next year.
Mr Guilherme Cavalcanti said in an interview with Reuters that the company investment plan and its budget were unchanged, despite pressures from higher costs and project delays, echoing comments made by newly appointed Chief Executive Murilo Ferreira.
But Mr Cavalcanti said that meeting the USD 24 billion spending target for this year nearly double last year outlay would be challenging. He said referring to a slower than expected spending run rate in the first months of 2011 that "The second semester generally tends to be higher but it is hard to say whether we will have to carry over into the first quarter of next year."
He added that "We will have to wait and see."
Mr Cavalcanti said the firm had no plans to change its bid. He said that "There is a chance another company a Chinese company, could bid, but we will stay with our bid."
Vale record spending plans reflect efforts to capitalise on its organic growth potential, vastly boosting output of key products amid soaring demand for minerals from emerging markets such as China.
The mining giant has also made a push to diversify into different markets, not least into resource rich Africa and made a USD 1.1 billion bid for South African miner Metorex in April.
Mr Guilherme Cavalcanti said in an interview with Reuters that the company investment plan and its budget were unchanged, despite pressures from higher costs and project delays, echoing comments made by newly appointed Chief Executive Murilo Ferreira.
But Mr Cavalcanti said that meeting the USD 24 billion spending target for this year nearly double last year outlay would be challenging. He said referring to a slower than expected spending run rate in the first months of 2011 that "The second semester generally tends to be higher but it is hard to say whether we will have to carry over into the first quarter of next year."
He added that "We will have to wait and see."
Mr Cavalcanti said the firm had no plans to change its bid. He said that "There is a chance another company a Chinese company, could bid, but we will stay with our bid."
Vale record spending plans reflect efforts to capitalise on its organic growth potential, vastly boosting output of key products amid soaring demand for minerals from emerging markets such as China.
The mining giant has also made a push to diversify into different markets, not least into resource rich Africa and made a USD 1.1 billion bid for South African miner Metorex in April.
