Vale expects a mid-2017 restart for Samarco, a 50/50 joint venture (JV) it co-owns with BHP Billiton, a top executive said this week.
Vale's CEO, Murilo Ferreira, told reporters his company expects to reach an agreement with BHP Billiton "until December 15" this year, so the two shareholders can set up a business plan for the Brazil-based pellet producer.
Samarco's operating license was revoked last year, following a deadly iron ore waste dam burst, which killed 19 people. Since then, the company halted output and was about to run out of cash, according to several credit rating agencies.
However, in November, a Minas Gerais state regulator said a mid-2017 restart for Samarco was "possible," reviving hopes for the two shareholders.
"Analysis and studies are being conducted in [the state of] Minas Gerais, so we can have some time [to act], as an agreement [with BHP Billiton] comes out," Ferreira said this week.
"I want a deal [with BHP Billiton] to come out until December 15," he added.
Vale made this week a presentation to investors in New York and then talked to reporters.
Vale's CEO said the company is now closer to disinvesting from its fertilizer business, but declined to provide further details. An anonymous source told Reuters US Mosaic could pay $3.6 billion for some of Vale's fertilizer assets.
Vale's presentation highlighted, among other points, the company's competitive position, which is based in four main areas: environmental licensing, project implementation, cost-cutting and portfolio management.
Vale said it managed to reduce costs over 30 percent since 2002, despite increased iron ore volumes.
As for 2016, Vale forecast a $6 billion Capex, down from $8.4 billion in 2015.
Peter Popinga, Vale's ferrous minerals director, said the company's S11D iron ore project is 96 percent complete and should start up this year.