UPDATE 1 – Vale Brasil says ‘on the right track’ to resume dividend payments | Instant News


(Add information about dividend policy, capital expenditure estimates, investment in renewable energy)

RIO DE JANEIRO, May 12 (Reuters) – Brazilian iron ore miner Vale SA is “on the right track” to start paying dividends again, the company said in a presentation on Tuesday, without offering further details.

The company suspended dividend payments after a deadly dam erupted last year that killed hundreds of Brazilians in the city of Brumadinho. It was the second deadly dam on the Vale-related dam in the Brazilian state of Minas Gerais in less than four years, and triggered a management reshuffle and a pair of criminal investigations.

Executives have been reluctant to discuss the possibility of continuing dividend payments since then.

In late April, Chief Financial Officer Luciano Siani said the company would consider this issue after paying back the revolving credit line the company took in March to deal with a new coronavirus pandemic.

In a presentation to the Global Metals, Mining & Steel Conference from Bank of America, Vale estimates annual capital expenditure estimates of $ 5 billion in 2020 and 2021, and $ 4.5 billion thereafter. A Vale spokesman, however, said the company did not change the official 2020 capital expenditure guidelines of $ 4.6 billion.

Vale also said it would invest $ 2 billion in renewable energy, but did not offer a proposed schedule for renewable energy investment. (Reporting by Gram Slattery and Editing Marta Nogueira by Chizu Nomiyama and Bernadette Baum)

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