Brazil-based iron ore mining goliath Vale has recently announced that its board of directors has approved its investment budget for 2011, involving capital expenditures of US$24 billion, dedicated to sustaining existing operations, research and development (R&D) and project execution.
According to a Vale statement, the capex budget for 2011 represents an increase of 125.1 percent over the US$10.662 billion invested in the last 12-month period ended on September 30, 2010. The investment plan reinforces the focus on organic growth as a priority: 81.3 percent of the budget is allocated to finance R&D and greenfield and brownfield projects, against an average of 74.4 percent over the last five years.
The projects approved by the board include Carajás (additional 30 million mt per year), Conceição Itabiritos, Vargem Grande Itabiritos, Oman, Tubarão VIII, CLN 150, Salobo, Salobo II, Konkola North, Long Harbour, Totten, Moatize, Biofuels, Estreito and Karebbe.
18 large projects are coming on stream in 2010-2012, creating cash flow generation from the US$26 billion of capital invested over time in their development, the company said, adding that it will continue with stable investments in infrastructures as well.