Vale expects global iron ore demand to grow 3% in 2020
Eduardo Bartolomeo, chief executive officer of one of the world's largest mining companies, Vale SA, said Friday that resuming dividend payments or share buybacks will depend on progress in repairing damage from the destruction of the Brumadinho tailings dam, which killed more than 250 people.
He told investors that Vale will be able to resume paying dividends at some point, but that "the moment has not yet come."
Bartolomeo spoke the day after Vale reported weaker-than-expected 15% profit growth in the third quarter as the company struggles to recover from lost production after regulators have demanded the closure of a number of the company's other dams for reasons security.
Vale shares, however, rose 2.7% in morning trading, with analysts citing strong cash flow during the reporting period, which they said cut debt to an 11-year low.
Also during a conference call, Marcelo Spinelli, Vale's director of ferrous metals, predicted a 2% to 3% increase in global iron ore demand in 2020, adding that he expects a 1% increase in steel production in China.