Vale mining company will pay dividends for $ 4.5 billion

The Brazilian company Vale SA, which is one of the world's largest iron ore producer, increased the interest rate on dividends due to the increase in raw materials prices, which led to an increase in demand from Chinese consumers. Also this year, the first 13 percent of the total dividend amount will be paid, in 2013 payments for them will amount to $ 4.5 billion. Moreover, at the beginning of the year it was planned to pay dividends totaling $ 4 billion. As a result, holders of ordinary and privileged shares will receive approximately 43.7 cents for each security. The amount of the first part of the payments was increased by $ 500 million. And now it will amount to $ 2.25 billion. Vale representatives officially announced this.

This Brazilian company is the third largest mining of mountain ore in the world. To date, Vale AS is busy with the maximum possible reduction in losses: the company actively sells assets and focuses exclusively on the most profitable projects, since its main goal today is the desire to revive effective production and avoid reducing the cost of its shares. Last year, Vale AS paid a record for itself the amount of dividends - $ 6 billion.

“The increase in iron ore turned out to be greater than expected, the demand for this type of raw material from China was also increased, this served as the main“ engine ”of the interest rate of dividends,” said HSBC Holdings and Luis Fornari. “Vale management understands that the fastest way to make the company’s shares in demand can be by increasing interest rates on dividends, which is what Brazilian Vale used,” added analysts.