Vale SA attracted $ 5 billion

The world's largest mining company Vale SA announced on Thursday that it entered into a contract for a five -year renewable credit line for $ 2 billion on the best conditions. This is stated in the message of the enterprise.

The renewable credit line was organized by a syndicate, which included 16 international commercial banks. В составе синдиката присутствуют следующие банки: Barclays, банк Tokyo-Mitsubishi UFJ, BNP Paribas, Credit Agricole, Citibank, Deutsche Bank, HSBC, Intesa San Paolo, JP Morgan, Mizuho, ​​Natixis, The Royal Bank of Canada, the Bank of New Scotland, Soset Zheneral, Standard Chartered and Sumitomo.

Vale and some of its subsidiaries can attract $ 5 billion for their development, since it already has a line for $ 3 billion of which will come in 2016.

Renewable credit lines work as a shock absorber, reducing liquidity periods, which increases the cost of the company and allows you to more efficiently manage cash, in full accordance with the strategic tasks of Vale aimed at reducing the cost of working capital.

Another successful event for the Vale mining company was to obtain a license from the Environmental Protection Agency Brazil to further expand the capacities of its huge iron ore Carajas project with a total cost of 19 billion $ 500 million.

The Serra Sul mine is part of the world's largest Carajas iron ore deposit located in the Amazon state of steam. It is expected that its commissioning will occur in 2016, and the design capacity of 90 million tons of iron ore annually will reach Vale in 2018.

Recall that Vale recently pursues a policy of reducing costs completely concentrated on the implementation of the Brazilian project by Serra Sul and other nearby quarries.

The updated mine should replace the exhausting deposits located mainly in the southeastern state of Brazil Minas Gerais, and is also designed to compensate for the drop in the quality of raw materials in a number of other deposits.

According to the general director of Vale SA Mrilo Ferreira, the demand for iron ore in the coming years will grow by 3 percent per year.