OREANDA-NEWS. December 21, 2012. Brazilian miner Vale is pushing ahead with sales of its noncore assets, including all of its oil and gas assets, and will focus on expanding its iron ore production at home, the company's chief executive said Thursday. In oil and gas, "we're selling everything," CEO Murilo Ferreira told journalists at Vale's London investor day. "We will make a couple of announcements in the next few weeks. It's not going to be for all the assets because you don't sell to just one firm," he said, but he noted that it's part of the noncore asset disposals.

Vale started its activities in oil and natural gas exploration in 2007 and has drilled 14 wells since 2008, resulting in five offshore discoveries. Other assets up for sale include Vale's 22% stake in Norway-based aluminum producer Norsk Hydro ASA (NHY.OS).

Vale is also selling stakes in its logistics infrastructure. It plans to sell up a stake of 50% or more in its Brazilian rail and port logistics unit Vale Logistica Integrada, said Mr. Ferreira. The sale process is due to close in the first half of 2013 and has attracted high demand from a wide range of both strategic and financial investors, he noted.

In Mozambique, the company is also looking to bring in more offtake investors to its 51% share of the Nacala railway and port project in the northern part of Mozambique.

Separately, the miner said that it's focusing on organic growth in Brazil through its Carajas and Serra Sul projects in order to boost its iron-ore production, which has remained broadly stable since 2006.Mr. Ferreira said Vale's iron ore used to account for more than 70% of the Brazilian domestic market, but is forecast to fall to 29% by 2015 unless Vale takes steps to boost its iron ore output and secure captive markets. "For us it's an important issue to recoup the market share we lost in Brazil," Mr. Ferreira said. He attributed the lost market share to the fact that steelmakers have taken steps to vertically integrate.

Vale is currently building the Companhia Siderurgica do Pecem steelworks project in partnership with South Korean steelmakers Posco and Dongkuk Steel Co. CSP is due to start production in the first half of 2015, producing 3 million tons a year of steel, mainly for its South Korean partners.