Brazilian miner and iron ore producer Vale said it is still working on a $10 billion core asset sale by 2017 as a way to reduce debt.
During the Bank of America Merrill Lynch Global Metals, Mining & Steel Conference in Miami the company added disinvestments in non-core assets should decline to a range of $4 billion to $5 billion in 2016, as opposed to a $4 billion to $5.5 billion range announced in April this year.
Vale said non-core assets to be sold include a coal JV, energy assets, and a second transaction of non-preferential shares.
The company said it’s “adjusting” its product strategy in order to improve margins. In doing so, Vale expects to increase the Carajas iron ore blend in Malaysia and China to 65 percent.
Vale said it expects the global nickel market to see a 50,000 mt deficit this year, but added stocks of the material in exchange warehouses remain high.
Additionally, Vale said it ended negotiations with Hydro, in which Hydro could acquire Vale’s 40 percent stake in bauxite producer Mineracao Rio do Norte (MRN).
“The two companies made an intention letter in October 2015 related to a potential transaction, but they couldn’t agree on the commercial terms of the deal,” Vale explained in a separate document filing.