https://www.engineeringnews.co.za

Vale expects to book $1.2bn Q4 fertiliser impairment

Vale CEO Murilo Ferreira

Vale CEO Murilo Ferreira

Photo by Bloomberg

7th February 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

Font size: - +

VANCOUVER (miningweekly.com) – Diversified Brazilian mining major Vale expects to book a $1.2-billion after-tax impairment charge on its fertiliser business for the fourth quarter.

The company, which expects to report fourth-quarter and full-year results on February 23, said in regulatory filing on Monday that the charge arises from the December agreement to sell certain assets in its fertiliser division to Mosaic Co for $2.5-billion.

Vale, which is headed up by CEO Murilo Ferreira, added that owing to a lower price outlook for certain products, it expects to recognise further impairments (with no cash effect) in its base metals operations in Vale Newfoundland and Labrador and Vale New Caledonia.

While the miner is still finalising the exact figures of these impairments, it expects these to be “significantly less” than the $4.9-billion impairment booked on these assets in 2015.

Vale also said it plans to reopen a 2026 bond issue and use the proceeds to redeem bonds maturing in March 2018. The investment banking units of Banco Bradesco, Banco do Brasil, JP Morgan Securities, MUFG Securities Americas and Santander Investment Securities will manage the issue, according to the filing.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

ATI Systems
ATI Systems

ATI systems comprises five divisions: electrical assemblies, drives and controls, feedback sensors, enclosures, and strip guiding.

VISIT SHOWROOM 
MBE Minerals SA (Pty) Ltd
MBE Minerals SA (Pty) Ltd

Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.047 1.013s - 140pq - 2rq
Subscribe Now