Brazil's Vale 2Q Net Profit Declines 34% At $1.1 Billion
July 28 2016 - 06:26AM
Dow Jones News
By Rogerio Jelmayer
SAO PAULO--Brazilian mining company Vale SA (VALE) saw a 34%
decline of its net profit in the second quarter, as it adopted a
provision worth $1.2 billion relating to last year's deadly dam
failure at its iron-ore mining operations it jointly owns with BHP
Billiton Ltd (BHP).
Vale on Thursday reported a second-quarter net profit of $1.1
billion, down from $1.68 billion in the year ago period.
The company said it recorded provisions to cover estimated
funding needed by the Samarco Mineracao S.A. joint venture under an
agreement signed with Brazilian authorities in March. In a separate
statement, BHP said it would record a provision of between $1.1
billion and $1.3 billion.
The Samarco dam spill released an avalanche of sludgy mine waste
that killed 19 people, destroyed villages and polluted more than
400 miles of rivers before spewing into the Atlantic Ocean. It is
widely considered to be Brazil's worst-ever environmental
catastrophe.
Meanwhile, Vale's net operating revenue was $6.6 billion in the
second-quarter, down from $6.9 billion in the prior period.
Its net debt ended the period at $27.5 billion, up from $26.5
billion in the second quarter a year ago.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
July 28, 2016 06:11 ET (10:11 GMT)
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