The board of Emerging Voice perrenial favourite miner Vale has approved a bullish capex budget of US$12.9bn for 2010, an increase of 29.3% compared to the US$10bn invested in the 12-month period ended June 30, 2009, the company reported in a release.
“The investment plan continues to reflect the focus on organic growth as the priority of our growth strategy,” the release said.
About 76% of the budget is being allocated to research and development, and greenfield and brownfield projects, compared to an average of 71% over the last five years. The company said its output index – which encompasses the operational performance of all minerals and metals produced – is estimated to increase at an annual average rate of 12.6% during the 2010-14 period, compared to 11% per year in 2003-08.
Vale () which is the world’s largest iron ore producer and second largest miner by market capitalisation also has plans to boost the production capacity of it’s copper, coal and fertilizer assets. Current projections for production for output in 2014 is expected to reach 450Mt of iron ore, 380,000t nickel, 650,000t of copper, 30Mt of coal, 3.1Mt of potash and 6.6Mt of :VALEphosphate rock, the release said.
In order to increase competitiveness, Vale also said it “will continue to invest a sizeable amount of funds in railroads, maritime terminals, shipping and power generation.”