Brazilian miner Vale is considering the possibility of selling core assets as a way to diminish its net debt, the company said this week in a conference call while releasing its quarterly results.
Vale’s CEO, Murilo Ferreira, said commodity prices fell more than expected, affecting the generation of cash at Vale, which expects to reduce net debt to $15 billion within 18 months from $25.23 billion in Q4.
Vale is "actively exploring more aggressive actions for this deleveraging, including the sale of core assets," Ferreira said. "We aren't attached to assets in any commodity, and we will evaluate all options," he added.
Ferreira admitted 2015 was a “very challenging” year for the Brazil miner and recognized that the sharper decline in commodities prices forecast by some observers may present a challenge to the company’s goal of deleveraging Vale after the conclusion of S11D.
In addition to the potential core assets sale, the Vale CEO said the company isn’t expecting any capital increase at this moment.