Vale Turning to Deals as Expansion Spending Thwarts Debt Fight
- Brazilian miner expects to announce a transaction next week
- CEO Ferreira is chasing $10 billion in core assets sales
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Vale SA is escalating its war on debt after making only modest inroads into its whopping $27 billion-plus burden last quarter.
The biggest iron ore exporter -- and the most indebted miner in the world after Glencore Plc -- reduced net debt by less than 1 percent in the second quarter even after generating cash for the first time in two years. Completing the industry’s biggest new mine, slightly lower prices from a year ago and a lack of major asset sales have inhibited Vale’s ability to deleverage.