Brazil's Vale Plans to Slash Capital Spending Next Three Years

SÃ O PAULO—Brazilian mining giant Vale SA said Wednesday it is planning to slash its investment spending over the next three years.

The company expects to invest a total of $9 billion this year and $7 billion in 2016. Capital spending will continue to slow in 2017 and 2018, to $5 billion and $4 billion, respectively. In 2014, Vale invested a total of $12 billion in its operations.

The company unveiled the plan in a presentation to investors posted to Brazil's Securities and Exchange Commission website.

Meanwhile, the company said it expects to raise between $6 billion and $7 billion with the sale of certain assets that aren't part of its core business.

Vale reported a net loss of $3.1 billion in the first quarter, as low global demand pushed iron-ore prices lower. The company, which is the world's largest iron-ore producer, posted a net profit of $2.5 billion in the first quarter of 2014.

Write to Rogerio Jelmayer at [e-mail]

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