Brazilian miner and iron ore producer Vale said it expects to invest up to $4.5 billion in 2017, as opposed to the company’s forecast to invest some $5.8 billion this year.
In a conference with investors and analysts, the company said it can also disinvest between $4 billion and $6 billion in potential “core asset” transactions between 2016 and 2017.
“Potential disinvestments and strategic transactions will help [Vale] balance its free cash flow while strengthening its balance sheets,” the company said.
As for its debt cutting goals, the company expects to diminish its net debt in the short-term from $19-$22 billion in 2016 to $15-$17 billion in 2017.
Vale also forecasts free cash flow to be positive in the next few years, even in “adverse price scenarios.”