Brazil’s miner Vale SA (ADR)(NYSE:VALE) stated that it had obtained bids to invest in its latest Caledonia nickel project as the firm reevaluates its nickel business. The company has just obtained proposals from bidders, and the process continues. Earlier in September, the company reported that it was seeking for new associates in the mine, based in a Pacific Island. It was assessing its nickel segment and low market rates for the metal and shut two of its higher cost mines in Canada last year.
In unrelated news, Vale and BHP Biliton reported that they have received an extension until November 16 by a Brazilian court to negotiate a settlement on a claim worth $47 billion coming from the Samarco mine disaster in 2015. Brazilian federal prosecutors in May 2016 served the joint associates in the Samarco iron ore mine with a $47.13 billion claim to pay for the environmental, economic and social costs of cleaning up the nation’s worst environmental disaster.
A settlement date of October 30 was established by the court earlier in 2017 after the parties failed to reach a conclusion by a previous deadline of June 30. Nearby cities were flooded and 19 people died after a dam intends to hold back mine waste broke on November 5, 2015.
More recently, Vale announced financial results for Q3 2017, wherein Fabio Schvartsman, the CEO, expressed that the third quarter performance demonstrates improvements in price realization and the preliminary outcome of the cost management matrix plan. Moreover, strict discipline in capital allocation can have a direct impact on upcoming cash flows.
He concluded that it is a new phase for company in terms of sustainability, corporate governance and efficiency. Now they can go to the Novo Mercado listing division well in advance of their original plans with the support of their shareholders. They are all set to transform Vale into a true firm.