Rio de Janeiro, Brazil-based Vale SA announced Friday that it plans to buy back up to $3 billion in its own stock following Board of Directors approval.
According to a regulatory filing, Vale will repurchase up to 84.8 million common shares and 102.2 preferred shares in a 180-day period. The buy-back program will result in Vale returning more profits to its shareholders, a move similar to those seen recently by rivals BHP Billiton and Rio Tinto.
Profit for the iron ore miner has been surging so far in 2011--Vale posted a record $6.83 billion profit in Q1, and profits are expected to continue to climb throughout the year.