Vale aims to halve its debt

The world's largest iron ore producer and Brazil's largest privately held company, Vale, expects to halve net debt to less than $ 10 billion by 2019 and use the additional cash flow to boost dividends.

The Rio de Janeiro-based company, which earlier this week threatened to flood the market with iron ore if steel prices remain high, has made debt reduction its top priority.

To achieve this, the miner is redefining the future of unprofitable and non-core operations and is even selling part of its former fleet of 19 Valemax vessels with a capacity of 400,000 tons.

In November, the company signed a 14-year $ 2.7 billion financing package with Japanese industrial and commercial giant Mitsui for Mozambique's giant uranium enrichment and infrastructure project.

Vale is now looking for a partner for its nickel project on the island of South Caledonia. Vale is ready to close its unprofitable nickel project in New Caledonia in the middle of next year, if it does not find a strategic partner willing to buy 20-40% of the mine's shares. The deal on this issue is expected to be completed by mid-2019.

Vale said it wants to diversify its investments and improve capital allocation, which should lead to stronger long-term financial results.