Vale SA (VALE5.SA) has decided to postpone the sale of a stake in its New Caledonia nickel mine after the initial bids for the asset came in at the lower end of expectations, two people with knowledge of the matter said.
The sale may be delayed for up to a year, as the Rio de Janeiro-based company anticipates a rebound in nickel prices, the sources said, requesting anonymity because they were not authorized to address the matter publicly.
One source said Vale was seeking an investment of $500 million to $1 billion in New Caledonia, which has suffered technical setbacks, a chemical spill and violent protests.
The company has recently reduced its debt burden – one of the aims of recent divestment efforts – and new Chief Executive Officer Fabio Schvartsman is running a broad strategic review.
Source: Reuters
