Brazilian mining giant Vale's (NYSE: VALE) investments in projects that are currently in the conceptual phase of development will be delayed, the company said in a statement e-mailed to BNamericas.
Vale plans to reduce its 2013 capex forecast to the lowest level in the last three years, following the current decline in iron ore prices due to the slowdown in Chinese demand.
"So far, we announced the postponement of the [US$3bn] Kronau [potash project] in Canada. Other projects may be postponed but only after being submitted to the company's board," Vale said.
In addition to Kronau's suspension, Vale is reviewing its US$5.92bn Río Colorado potash project in Argentine province Mendoza, as well as a US$2.5bn iron ore project in Guinea.
"When we announce our investment plan [for 2013], in December, the new economic environment will be reflected in it," Vale said.
The company is expected to approve an investment plan of US$16.8bn for 2013, down 22% from the US$21.4bn forecast for this year, according to a median estimate of six analysts polled by Bloomberg.
Source: BNamericas
