Japan's Mitsui Cuts Annual Profit Forecast, But Keeps Its Stake In Vale
According to the latest fire estimates, presented on Thursday evening, as a result of the collapse of the dam at the tailing dump, which belongs to the largest iron ore miner Vale in the city of Brumadinho, 110 people died and 238 are reported missing. The disaster is considered the deadliest in the history of a mine in Brazil.
Mitsui currently owns 5.59% of Vale.
“We will ask Vale, as a board member, to take appropriate action,” CFO Takakazu Uchida said at a press conference on Friday.
However, the house has no plans to change its stake in Vale, he said, adding that “Vale is an important strategic partner.
Mitsui lowered its net income forecast to ¥ 440 billion ($ 4.04 billion) for the year ending March 31, 2019 from ¥ 450 billion, as Vale will lose ¥ 10 billion in dividends due to Vale, Uchida said .
However, iron ore prices hit their highest level in 22 months after a seven-day rally on Friday driven by supply problems. The market is forecast to run into a shortage this year after Vale took steps to cut production following a disastrous dam break in Brazil last week.