Brazilian mining giant Vale on Tuesday announced plans to cut investments by nearly a third next year, from $14.8 billion (12 billion euros) in 2014 to $10.2 billion.
The drop marks the fourth consecutive year of cutbacks for the company, which incurred higher-than-expected net losses of $1.44 billion in the third quarter, down from a net profit of $3.5 billion in the same period last year.
Despite the setback, Vale ramped up production from July to September to a record 85.7 million tons.
Its board of directors approved, “capital expenditures of US$ 6.358 billion for project execution and US$ 3.809 billion dedicated to sustaining existing operations,” the company
The 2015 budget reflects a push to concentrate on its key iron ore business, after plunging prices have left a dent in the company coffers. Cooling iron-ore demand has cut prices in half since a December 2013 high of $140 a dry ton down to $70.
“Our main growth initiatives in iron ore are responsible for 71% of the US$ 6.358 billion budgeted for project execution in 2015,” Vale said.
The Rio de Janeiro-based firm added it would dedicate $3.7 billion to expanding its operations in Carajás, the largest iron mine in the world.