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SÃO PAULO – Brazilian mining giant
Valley
SA
On Wednesday, net profit rose in the second quarter as steel production in China continued to increase and the company increased sales of higher value products.
Vale, the world's largest producer of iron ore, posted a net profit of $ 76 million. $ 16 million in the same quarter a year earlier. The company announced a $ 1 billion share repurchase program and announced that it would pay $ 7.7 billion ($ 2.1 billion) in shareholder compensation, of which R $ 6.8 billion. in the form of interest on capital and 892.6 million reais in the form of dividends.
China is the largest steel producer in the world and by far the largest market in Vale. The Chinese government is pushing for stricter emissions controls in steel mills, and pollution abatement efforts are helping Vale sell ores at higher concentrations of iron, which are cleaner to process.
"The strong performance of the construction and machinery sectors continues to boost steel demand" in China, the company said in its earnings report.
the products with higher iron concentration allowed it to benefit from the higher prices that these products command on the world markets. Its gigantic S11D mine in northern Brazil, which produces higher quality ore, also continues to increase production
Underlying earnings amounted to $ 2.1 billion in the second quarter against 832 millions of dollars a year earlier
. The company reduced its net debt during the quarter, from $ 22.1 billion a year earlier to $ 11.6 billion the previous year, close to its $ 10 billion target. billion.
Writing to Jeffrey T. Lewis at [email protected]
