Vale CEO talks ‘consortium’ with Glencore – by Staff (Sudbury Star – December 19, 2013)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

A comment by Vale chief executive officer Murilo Ferrira, reported by Reuters on Wednesday, will have people talking again about a potential merger, or partial merger, between Vale and Glencore Xstrata operations in Sudbury.

Reuters reported Ferreira as saying he expects Vale’s “consortium” with Glencore in Sudbury nickel projects to be defined by the first quarter of 2014 and for the venture to operate as a single unit.

Vale spokesman Cory McPhee said Ferreira’s statement was made at an end-of-the-year luncheon with reporters in Rio de Janeiro on Wednesday at which Ferreira answered several questions.

His answer to the one about a Sudbury merger was a repetition of what he said during Vale Days at the New York and London Stock Exchanges a few weeks ago when he told reporters he expected to conclude the discussions in the first quarter of 2014, said McPhee.

“He’s speaking very broadly to potential outcomes,” said McPhee.

In November, Vale confirmed it was in talks with Glencore Xstrata about potential co-operation between the mining groups’ nickel operations to cut costs as nickel prices languish.

Vale said it wasn’t planning a corporate joint venture in Sudbury, but was looking at other options to join forces in mining, milling and smelting to save cash.

Vale and Glencore Xstrata are two of the city’s largest employers, with a combined workforce of more than 5,000.

For the original version of this article, click here: http://www.thesudburystar.com/2013/12/18/vale-ceo-talks-consortium-with-glencore

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