Vale Selling Kronau Near Regina? Vale, the Brazilian mining giant, is trying to sell its potash project at Kronau after putting the $3-billion solution mining project on hold in August, according to an article in Industrial Minerals earlier this month.
"Although the project has been advanced in terms of engineering, it will not be developed any further and will be sold so that Vale can prioritize projects in other areas," the article in IM said, quoting Vale officials in early December.
Located approximately 30 kilometres southeast of Regina, the Kronau project was supposed to employ up to 2,000 people during construction and, once operational, the mine would employ approximately 300 people permanently onsite.
In August, Vale CEO Murilo Ferreira announced Vale was postponing its $3-billion fertilizer project and may delay other investments as it seeks to contain spending and focuses on the expansion of its biggest mine.
The world's largest iron-ore producer is committed to "cost austerity," Ferreira told reporters in August. Vale's priority is the expansion of its $8.04-billion Serra Sul investment in Carajas, Brazil, the world's largest iron-ore mine and the company's biggest project ever, he said.
Ferreira, who took the helm at the Brazilian miner from Roger Agnelli last year, is selling unprofitable assets and reviewing spending plans amid rising costs and labour shortages. The company this year sold a thermal-coal project in Colombia for $407 million, its ferromanganese alloy businesses in Europe for $160 million and also exited the kaolin mineral business.
Recently, Vale said it will book a $4.2-billion US fourth-quarter pre-tax charge after lowering the valuation of a nickel mine and its stake in aluminum producer in Norway.
Vale will take a $2.85-billion US pre-tax writedown on its Brazilian nickel project Onca Puma after operations stopped and prices for the metal declined, the company said in a statement last week. The Rio de Janeiro-based miner said it will also recognize a $1.3-billion pre-tax impairment on its 22 per cent stake in Oslo-based Norsk Hydro.
Vale is selling assets, looking for partners and writing off unprofitable projects after shares slumped to the lowest in almost three years in September amid weaker demand from China and Europe. The company has agreed to pay the equivalent of $553.1 million US to settle Swiss and Brazilian tax disputes, of which about $451 million US will be booked in the fourth quarter.
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