News

One of the largest Brazilian mining companies in the world «Vale» announced the reduction of Nickel production. The decision was announced by the press service of the iron ore company. General Director of «Vale» Fabio Schwartzman said the lack of positive results in financing the extraction of Nickel. This result is due to unrealistic forecasts of analysts of the Corporation. Three years ago the cost of a ton of Nickel was estimated at 16 thousand dollars. At the moment the figure fell to the level of 10 thousand dollars per ton. In 2014, with production planning by Murilo Ferreira was made a wrong forecast. According to his calculations, the cost of tons of metal 2015 will reach 21 thousand dollars. However, this judgment proved to be erroneous.

The current CEO of the Corporation said that the heads of the Nickel mining and smelting sector should rely in the work on the current state of Affairs. This means that the company will be based on the currently existing prices. As there is an assumption that they will remain unchanged for a long period of time. This strategy of the Corporation could lead to the closure of the Nickel asset in New Caledonia. This is due to the disadvantage of the project. Financial losses from mining of Nickel observed in the annual reports for the past three years. Monetary losses in 2016 amounted to approximately 284 million dollars.

Vale also plans to reduce debt. In the reports for the second quarter of the current year debt decreased by 3%. In monetary equivalent it is of 22.12 billion. The company plans to reduce it to 15 billion dollars by 2018. However, with the current trend, this prediction is unlikely.