Vale CEO announces CAPEX increase after meeting with Mr Lula
Tuesday, 20 Oct 2009
Bloomberg reported that Vale SA will boost investments by 43%in 2010 to USD 12.9 billion.
The report cited Mr Roger Agnelli CEO of Vale, after a meeting with Brazilian President Mr Luiz Inacio Lula da Silva in Sao Paulo, as saying that “Vale will invest BRR 15.5 billion (USD 9.03 billion) in Brazil next year.’
The biggest share of domestic spending will be BRR 6.25 billion in Para state mines. He said that Vale expects its iron ore output to climb to 450 million tonnes by 2014 from 301.7 million tonnes this year.
Mr Agnelli said that Mr Lulu is happy with the company’s investment plan and that only shareholder opinions are relevant. He said he’s not aware of plans to oust him and wouldn’t even dream of leaving his job.
Mr Agnelli added that Vale plans to remain a minority holder in its Brazilian steel projects.
Mr Lula has urged Vale to process more of its iron ore into steel in Brazil to boost the country’s exports of higher value products. Earlier this year, Vale cut its investment budget by 37% reduced output and slowed new projects as demand waned amid a global economic crisis. It had previously planned to invest USD 14.2 billion this year.
