Vale’s Q2 capex reaches lowest level since ’05

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Vale announced an adjusted EBITDA of US$3.9 billion in Q2 with iron ore production of 96.8 tonnes and sales of 86.5 tonnes.

Iron ore production was 4.9 tonnes higher than the same period a year ago. Vale’s net operating revenues were US$8.616 billion.

Vale said capital expenditures have reached the lowest level for a second quarter since 2005, totaling US$705 million with US$205 million in project execution and US$500 million in sustaining capital.

The company benefited from the devaluation of the BRL against USD.

Voisey Bay announced a underground mine expansion project to be funded through its cobalt streaming deal announced in June.

Vale concluded negotiated new freight terms and lowered its shipping costs by US$5 per tonne.

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