Vale CEO: Coal Deal Soon

Brazilian mining company Vale SA is close to making a "strategic" announcement concerning its coal unit, the company's chief executive Murilio Ferreira said on Thursday during a conference call with investors without providing details.

Vale, the world's largest iron ore producer, has previously said it is trying to sell a stake in its Moatize coal mine, rail and port project in Mozambique.

Rio de Janeiro-based Vale, which reported a surprise $1.44 billion third-quarter loss earlier on Thursday also said high-cost iron ore producers are not closing mines as quickly as expected.

Still, iron-ore chief Jose Carlos Martins said during the call that the 40 percent plunge in the price of the main steelmaking ingredient this year had caused 50 million to 60 million tonnes of high-cost iron ore production to leave the market.

 

Reporting by Stephen Eisenhammer