Member access

4-Traders Homepage  >  Shares  >  BOLSA DE VALORES DE SAO PAULO  >  Vale SA    VALE5   BRVALEACNPA3

VALE SA (VALE5)

59
End-of-day quote. End-of-day quote BOLSA DE VALORES DE SAO PAULO - 10/24
23.71 BRL   +0.38%
2d ago BHP CEO defends iron ore strategy as best play in gloomy market
2d agoDJVALE : Produces Record Amount of Iron Ore Despite Falling Prices
2d ago VALE : 3Q14 Production Report
SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll news 

Argentina Says Vale Confirms Mine Project Moving Ahead

05/11/2012 | 06:23pm US/Eastern

Despite recent comments indicating that it may be reconsidering a $6 billion fertilizer project in Argentina, Brazilian mining company Vale SA (VALE, VALE5.BR) re-iterated a pledge to invest $1 billion this year to move ahead with construction, Argentina's planning ministry said in a statement Friday.

Vale's local executives met with the planning minister and mining secretary Friday and "ratified that they will spend $1 billion on the Rio Colorado project this year," planning ministry spokesman Horacio Mizrahi said in the statement.

The government is keen to show that the massive mining project is moving forward amid signs that investors are wary following the Argentine government's decision last month to nationalize the country's largest oil company, YPF SA (YPF, YPFD.BA).

On May 3, Vale Chief Executive Murilo Ferreira said the company planned to make a decision on the project's future on May 20. Vale is evaluating Rio Colorado in view of Argentina's economic situation, Ferreira told reporters. There may now be "new factors in the project's construction," Ferreira said.

A Vale spokesman declined to comment.

At the end of April, the Vale executive said that the project was already up for review even before the YPF takeover because of Vale's concern over "an explosion in inflation" of around 30% a year in Argentina, and "a series of discussions over infrastructure, port, railroad and taxes."

However, Argentine authorities are keen to send out signals that the project is on track.

Next week, Vale officials are scheduled to meet with the new president of state-run YPF Miguel Galuccio to discuss plans to develop tight gas deposits in the Lajas fields needed to provide the project's power, the planning ministry said.

Vale bought the potash mine project from Rio Tinto PLC (RIO, RIO.LN) in 2009 and production is slated for 2014.

Heated water will be pumped deep under the surface of the site in the remote southern tip of Mendoza province to bring the potash to the surface.

The project also calls for construction of a railroad to carry the mine output to a port on the Atlantic Ocean and an electric power plant at the Rio Colorado site.

-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; shane.romig@dowjones.com

--Jeff Fick in Rio de Janeiro and Alberto Messer in Buenos Aires contributed to this article.

Latest news on VALE SA
1d ago VALE : 3Q iron ore output hits new high
2d ago BHP CEO defends iron ore strategy as best play in gloomy market
2d agoDJVALE : Produces Record Amount of Iron Ore Despite Falling Prices
2d ago VALE : 3Q14 Production Report
10/18 VALE : signs Contract of Work amendment in Indonesia
10/17 VALE : to pay US$2.1bn second installment of minimum dividend
10/17 VALE SA : ex-dividend day for interim dividend
10/16DJBig Brazil Cabinet Becomes an Election Issue
10/16 VALE : pays dividend to shareholders
Advertisement
Chart
Duration : Period :
Vale SA Technical Analysis Chart | VALE5 | BRVALEACNPA3 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF