Brazil miner Vale expects to invest $4 billion in H2, as the company looks at ways to reduce costs, it said on Wednesday in a filing at the nation’s securities exchange commission, CVM.
According to the company, expected investments for 2015 should total between $8-8.5 billion, $1.7 billion bellow the budget approved by the company’s board of directors on December last year.
“Capex has been reducing as we complete our investment cycle,” it said, adding capital spending has been declining in H1 in the past few years, from $7.3 billion in H1 2012 to $5.1 billion in H1 2014 and $4.3 billion in H1 this year.
The company also said it will continue disinvesting in non-essential assets and will start forming strategic partnerships.
Looking forward, Vale expects to have a strong generation of cash flow by 2018. Among the initiatives it plans to put in place in order to support such goals, the company cited lower Capex, increased production volumes, reduction costs, including in freight, and higher quality iron ore, which will “sustain an increase in price realization.”