Metals
20/7/2012

Brazil's Vale Expects Mining Royalties Agreement 'Soon'


Brazilian mining heavyweight Vale SA said that it expects to reach an agreement "soon" to settle a dispute with the Brazilian government over royalties payments.
"The intention of the working group is that an agreement between the parties should be reached soon," Vale said in a statement.
On Wednesday, the working group set up by Vale and the country's national mining department, or DNPM, concluded its studies to resolve a dispute over the payments, the Mines and Energy Ministry said.
The DNPM said previously that Vale owes 4.8 billion Brazilian reais ($2.4 billion) in overdue royalties payments for its activities in Minas Gerais and Para states between 1991 and 2007.
"There hasn't been any definition over specific values relative to the issues under discussion," Vale said in the statement Thursday.
A possible settlement between the government agency and Vale, the world's largest iron-ore producer and second-biggest nickel producer, would help avoid a potentially lengthy and contentious court battle over the royalties payments.
Source: Dow Jones

Metals

Gold gained in London as speculation that the U.S. Federal Reserve may signal the need for sustained stimulus countered further outflows from investor holdings.
Copper traded near a two-week high on mine-supply concerns and amid comments from U.S. Federal Reserve officials supporting its stimulus program before Fed Chairman Ben S. Bernanke testifies in Congress today.
Steel reinforcement-bar futures rose for the first time in three days as iron ore prices recovered from the lowest level in more than five months.
Iron ore will fall another 8 percent in the next several months as steel mills in China, the biggest importer, shut down because of maintenance, power rationing and squeezed profits, according to Deutsche Bank AG.




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