Vale Announces Investment Budget for 2012
OREANDA-NEWS. November 29, 2011. Vale
Based on a long-term view of global minerals and metals markets, the capex budget is aligned with our vision of becoming the best global natural resources company in long-term value creation, with excellence and passion for people and the planet.
|
Investment allocation for 2012 | |
|
By category |
% |
|
Organic growth |
71.5% |
|
Projects |
60.5% |
|
R&D |
11.0% |
|
Sustaining of existing operations |
28.5% |
|
Total |
100.0% |
|
By business area |
% |
|
Bulk materials |
55.6% |
|
Ferrous minerals |
46.7% |
|
Coal |
8.9% |
|
Base metals |
21.6% |
|
Fertilizers |
9.6% |
|
Logistics for general cargo |
2.4% |
|
Power generation |
3.6% |
|
Steel |
2.9% |
|
Others |
4.3% |
|
Total |
100.0% |
|
|
% |
|
|
63.7% |
|
South America (ex- |
6.0% |
|
|
11.7% |
|
|
9.1% |
|
|
5.7% |
|
|
3.3% |
|
Others |
0.5% |
|
Total |
100.0% |
Vale has currently twenty main projects approved by the Board of Directors and under construction to implement organic growth. The main projects are detailed in this report and comprise 75% of the USD 12.949 billion budgeted for project development in 2012.
Vale's R&D investments are the backbone of future growth options. The budget for 2012 is comprised of USD 918 million to finance the global mineral exploration program, USD 848 million for conceptual, pre- feasibility and feasibility studies, and USD 591 million to be invested in new processes, technological innovation and adaptation.
The mineral exploration program involves initiatives in the
The sustaining capex budgeted for 2012, at USD 6.106 billion, will be dedicated to not only maintain our production levels but also to invest in initiatives dedicated to improve operational efficiency, excellence in health and safety, and environmental protection.
We are expanding tailing dams and residual stockpiles to maintain the production rates, alongside with initiatives to improve maintenance management, and consequently reaching higher utilization rates in order to have lower maintenance costs and higher operational efficiency. Vale is also investing to improve managerial efficiency by integrating information throughout the company.
We are developing the clean AER (atmospheric emission reduction) project, which will significantly reduce air pollution in
In line with our focus on the search of excellence in health and safety, Vale is investing to improve standards in our operations.
The normalized sustaining capex budget, net of the initiatives to increase efficiency and sustainability described before, represents 4.4% of our asset base in September 2011, and is in line with the 4.7% for the period between 2007 and 2010. After adding the initiatives described before, the approved sustaining investments amount to 6.5% of our asset base.
Sustainability contributes to a better world and the same time enhances competitiveness in the long- term. Sustainable development is achieved when our businesses provide value to shareholders while creating a positive social, economic and environmental legacy in the geographies where we operate.
Investments in corporate social responsibility in 2012 will reach USD 1.648 billion, of which USD 1.354 billion will be invested in environmental protection and conservation, and USD 293 million in social projects.
Vale has been committed to develop a cleaner energy matrix by investing on renewable energy sources such as wind power and biofuels. The Biodiesel project involves the plantation of
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