Usiminas Sale Boosts Vale Coffers

Vale’s sale of some 14.9m Usiminas shares for BRL40 each, or a total of about $250m, will provide a modest inflow of cash that will likely be used to support project development, says Tony Robson, equity analyst at BMO Nesbitt Burns. The company says it has budgeted $14.8bn for project development and exploration for this year. Vale’s board has ratified the sale of some 14.9m shares it holds in Usiminas on February 19. On January 29, it had agreed to sell these shares to Japan’s Nippon Steel, the buyer says.