By Paul Kiernan
RIO DE JANEIRO--Brazilian mining giant Vale SA, the world's
largest iron-ore producer, said Friday it plans to slash dividends
to the lowest level in eight years in a bid to shore up cash amid
spiraling commodities prices.
Vale's management proposed to the board a $2 billion minimum
dividend payment for 2015, down from $4.2 billion last year and the
lowest outlay since 2007.
The move comes as Vale and other diversified mining companies
are fighting to weather a brutal downturn in commodities such as
iron ore, prices of which have fallen by more than half since early
2014 and touched a 5 1/2 -year low on Friday.
"The dividend proposed preserves Vale's sound capital structure
and is consistent with the current scenario," Vale said in a news
release. "We are intensifying the cost and capex reduction targets
announced last December and developing partnerships and divestments
to reinforce our free cash flow."
Write to Paul Kiernan at paul.kiernan@wsj.com
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