October 16, 2008

Vale could seek coal assets - Analysts

BNamericas reported that Brazilian mining and metals group Vale could seek acquisition opportunities next year, possibly targeting coal assets.

Mr Pedro Galdi, an investment analyst with ABN Amro Real Corretora, told BNamericas that "Vale has stressed that it plans to grow organically and has said it would not rule out a strategic acquisition if an interesting opportunity appears. But the company's recently announced big investment plan for the next five years focuses on organic growth and not acquisitions.”

He said "In my view, Vale could seek an acquisition, but not an asset such as Alcoa, Rio Tinto or Alcan. A company related to coal, for instance, would make sense and could happen. I do not think it would be a large scale purchase.”

Vale plans to invest USD 59 billion for the 2008-12 period in worldwide operations focusing on iron ore, nickel and aluminum projects, among others. Disbursements next year alone are expected to hit USD 11 billion.