Vale’s Agnelli Mum on Acquisition Possibilities

Vale CEO Roger Agnelli dodged questions about a possible re-attempt at Swiss miner Xstrata during a conference call Friday. “The fact is we’re quiet. We’re just looking after our own house,” he says, as Vale prepares to face poorer economic conditions in 2009. Debt problems at Xstrata parent Glencore and a decline in Xstrata’s market value have led to speculation that it might be an opportune time for the Brazilian miner to try again for the unit. “Even with the current asset prices, it’s more interesting for Vale to continue with its organic growth,” Agnelli says. Vale also said this week it was not attempting a purchase of Xstrata in a statement. The CEO sees a recession of at least 6-7 months, but that Vale is in a strong position due to its strong cash position. It raised $12.6bn in a share sale in August and has about $15.3bn total on hand. The majority of 2009 investment will be maintained, Agnelli says, but 2010 investments could be reduced depending on the extent of poor conditions.