SAO PAULO: Brazil's Vale the world's second largest mining company, plans to invest about $19 billion in 2012, a sharp decline from the $24 billion planned for 2011, a local newspaper website said late on Friday, citing unnamed sources.
The new capital expenditure budget, the first drafted under Vale Chief Executive Murilo Ferreira who took over the world's largest iron ore miner seven months ago, will be more in line with the amount of capital invested in 2011, reaching a maximum of $19 billion, O Estado de S.Paulo newspaper said.
Vale spent 11.308 billion of its 2011 capex budgets up to September, less than half of its initial projection for the year.
The 2012 budget, which will be presented at the Vale Day event at the New York Stock Exchange on Monday, will reflect that, the newspaper said.
Representatives at Vale told Reuters they would not comment on the report.
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