OREANDA-NEWS. Vale announces that its Board of Directors has approved the investment budget for 2014, with capital expenditures of USD 9.3 billion for project execution and USD 4.5 billion dedicated to sustaining existing operations, as well as USD 0.9 billion for research and development (R&D).

After peaking in 2011 at USD 18.0 billion, capital and R&D expenditures in 2014 will show a decline for the third year in a row. This reflects the greater focus on capital efficiency, which entails among other things pursuing shareholder value maximization through a smaller portfolio comprised of projects with a high risk-adjusted expected rate of return. This is evidenced by the fact that more than 80% of the 2014 budget for project execution is dedicated to the financing of the expansion of the iron ore production and distribution network, the development of the integrated mine-plant-railway-port coal operations in Mozambique and the Salobo copper and gold project.

“We are strongly committed to deploying capital only in world-class assets with large reserves, low costs, high quality products and opportunities for low-cost brownfield expansions” said Murilo Ferreira, CEO. “On the environmental permit front, all our major projects in Brazil - such as Carajas S11D, CLN S11D and Conceicao Itabiritos - have already obtained the licenses required for their execution.” added Mr. Ferreira.