Brazilian mining firm Vale has predicted that its capital expenditures will fall from the $8.2bn in 2015 to $4.2bn by 2020.
At an investor meeting in New York, the company presented its outlook and said it also plans to increase the necessary adjustments in a bid to cut costs and expenses and maintain the operating discipline.
It will also simplify its corporate structure amid an unfavorable demand and supply outlook and additional volatility in commodity prices. It will complete divestments and partnerships in 2016.
Vale said it is confident that it will generate positive cash-flow by 2017 without considering any proceeds from additional sales.
By 2018, the company’s production volumes are set to increase by 30% for iron ore, 10% for nickel and copper.
For 2016, Vale announced $6.2bn capex including $3.2bn investment in project execution and $3bn related to sustaining capital and replacement project.
In November 2015, Vale announced the closure of its nickel smelting and refining operations in Manitoba, Canada, in 2018.
Vale mining and milling in Thompson director Mark Scott said that the closure will take place after completing relevant works so that the company can ship nickel concentrate from its mill, Reuters reported.
Image: At an investor meeting in New York, Vale said it will complete its investment cycle by 2018. Photo: courtesy of Vale.