Talks are currently underway between Vale SA (ADR) (NYSE:VALE.P) and Anglo American BHP Billiton Plc. The two business gurus are exploring options for Samarco which happens to be their joint venture.
Vale’s investor relations director André Figueiredoin a meeting that brought together a large number of investors and analysts in Sao Paulo made some important points. He said that there was the possibility that Vale would turn out to be the owner of Samarco. It will be another opportunity for Samarco to kick back to life.
It was at the start of this month when reports came out that the talks in line with the deal joint venture had already taken shape. One of the options was for Vale to make a consideration on whether or not to move ahead and buy out is partner. The place where the two were expected to lock horns for over quite some time was in the establishment of the most appropriate price.
It was back in November when flood waters inundated a dam that had been set in place to hold back the waste eventually leading to its collapse. It was an unfortunate incident that led the loss of about 19 lives and it was termed one of the worst environmental disasters in Brazil.
Figueiredo opined, “Given current iron ore prices, the company could reach its net debt goal of $10 billion before the year end. Vale is prioritizing cutting debt and increasing returns for shareholders before any new investments, he added.”
The top nickel producer around the globe has revealed that it has no plans to offer a lift to the production of the metal. It gave the reason that it was anticipating a much stronger demand from the electric car industry.
He went further to add that Vale at the moment was still unwilling to move ahead and sell out nickel-producing assets. The company took a strong standpoint that recovery in the metal’s price would pull in any time soon. However, we cannot speculate quite much at the moment.