Author: Paul Ploumis03 Dec 2014 Last updated at 02:00:26 GMT
BRASILIA (Scrap Monster): World’s largest nickel producer, Vale SA declared that, due to the decline in the price of nickel, the company has decided to ell off its minority stakes in its metal producing unit, which is worth about 35 billion dollars.
The Chief Financial Officer of the company, Luciano Siani, stated that the base metal unit of the company, which is of the highest value for the company after the iron ore unit, might be worth of 30 billion dollars or 35 billion dollars. He also added that the company will only sell their stakes if they find the selling price to be acceptable.
He also said that the company is ready to accept an Initial Public Offering (IPO). The company is planning to take an opportunity sooner rather than later, and sell off their stakes at the lower5 profit units.
At the current year, the value of the Vale has declined about 43 percent, and has faced many setbacks this year, including the strikes which occurred in the mines of Canada, and the defects in the company’s plants located in Brazil, and also an acid spill which occur at New Caledonia. The value of nickel has declined 18 percent since the hike in September 8th and the company has been increasing its production.
The annual output of nickel in this year will hike to about 303,000 tonnes, the company stated, in one of its annual meetings which was conducted today. The company is also planning on to reduce its capital expenditure by 26 percent to 10.2 billion dollars by next year, which is noted to be as the highest reduction in capital expenditure by the company, since the year 2009.