Multinational metals and mining corporation Vale has unveiled a budgetary estimate of $16.3bn for 2013.
The approved investment budget for next year includes project execution expenditure of $10.1bn, operational expenses of $5.1bn and research and development (R&D) expenditures of $ 1.1bn.
Vale projects a decrease in capital and R&D expenditures for 2012, from 2011's peak of $18bn to $17.5bn.
Capital management at Vale would now be shifted to capital efficient volume, unlike the current marginal volume.
The company plans to meet global demand for metals and minerals with a focus on careful capital allocation and cost minimisation.
Vale CEO Murilo Ferreira noted that the company's decision making would derive from a lean management organisation and efficient project execution.
"We are now more than ever strongly committed to investing only in world-class assets, with long life, low cost, expandability and high-quality output, capable of creating value through the cycles," Ferreira said.
Ferreira further stated that the company seeks to permanently reduce its cost structure to optimise capital management.
"The preservation of our current investment-grade ratings is of course one of our main permanent commitments," Ferreira concluded.
Image: Vale will streamline its business in 2013 with an extra focus on capital allocation. Photo courtesy of Vale.