SÃO PAULO Vale
SAs board has approved total capital expenditures of
$16.3 billion for 2013, down from the $21.4 billion planned for
The reduction is part of a
"stricter discipline in capital allocation and a stronger focus
on maximizing efficiency and minimizing costs," the diversified
miner said Monday.
A moderate expansion in global
demand for minerals and metals over the medium term prompted
the worlds largest iron ore producer to change the way it
prioritizes its investments, it added.
"Our priority has shifted from
the marginal volume to the capital-efficient volume, a move
that has deep implications for the way we manage capital," Vale
The Rio de Janeiro-based miner
is now "more than ever strongly committed to investing only in
world-class assets, with long-life, low-cost expandability and
high-quality output," chief executive officer Murilo Ferreira
Of the total amount approved for
2013, $10.1 billion will be destined for project execution,
$1.1 billion for research and development (R&D) and $5.1
billion will go toward sustaining existing operations. Next
year, $7.65 billion will be spent in projects in the ferrous
minerals segment, $3.78 billion in base metals and $1.73
billion in coal.
Late last year, Vales
board approved $21.4 billion in capital expenditures for 2012,
of which $12.9 billion was for project execution, $2.4 billion
for R&D and $6.1 billion for sustaining existing
operations. Total capital expenditures, however, are only
expected to reach $17.5 billion by the end of the year, Vale
A version of this article was first published by AMM sister
publication Steel First.