Rinehart’s Hancock weighs $3.3 billion iron ore mine project
Hancock acquired a 51% interest in the Mt Bevan project from Legacy Iron Ore Ltd. and Hawthorn Resources.
Brazilian mining conglomerate Vale, the world’s leading iron producer, reduced its spending budget by 11 percent for 2012 in the face of an uncertain outlook for the global economy and commodities prices Reuters reports.
The Rio de Janeiro-based company plans to invest $21.4 billion on mining projects next year after failing to meet spending targets in 2011. In a press release, Vale specified that it will invest $12.95 billion on project execution, $2.4 billion on research and development and $6.1 billion on sustaining existing operations. Iron-ore output will be 312 million metric tons, little changed from this year’s expected 311 million tons.
Chief Executive Officer Murilo Ferreira is reviewing the company’s projects amid delays and cost overruns.
“Vale faces some hurdles for the implementation of its portfolio of world-class projects: environmental licensing, human capital constraints, cost pressures and longer lead times,” Vale said in today’s statement.
The company has currently twenty main projects approved by the Board of Directors and under construction to implement organic growth.
Last year, Vale achieved the best results in the history of the global mining industry last year, with net profits of $17.3 billion.
Its business volume reached $46.4 billion and its production rose 29.4 percent to 308 million tons of iron ore.
Read Vale’s full statement here.
