The main steps for the acquisition of Brazilian fertilizer assets were completed and one month's performance of the newly acquired assets is already captured in the 2Q10 results. Bayovar, Vale's first greenfield project in the fertilizer business, came on stream this month, on time and on budget. This was the third project to be delivered out of seven scheduled to be concluded this year.
As the many greenfield projects due to start up in the near future are delivered, the ground will be laid for the building of new growth platforms through the development of low-capex brownfield projects to meet global demand expansion, opening additional lanes to shareholder value creation.
KEY COMMENTS MADE BY VALE'S EXECUTIVES DURING THE WEBCAST
OVERALL RESULTS"Everything is going well, the trend is very good in terms of revenue, costs and perspectives, we are very happy that we are in a very good year for Vale. We have several projects we are finalizing right now, we have been investing heavily in the last three, four years and now we are going to see some return in those investments," said Vale's CEO Roger Agnelli. "We are in a very strong position, I should say that we are in the best moment of our history, we developed our assets, our workforce is strong and trained, ready to face day by day issues and we tackled other difficulties we might face. The scenario is very positive," completed Agnelli. PRICING "As far as the price system is concerned, we just came from a one year price system to a price that is established quarterly. So it was a big improvement from one system to the other… We need a system that can cope with volatility and we believe that the quarterly system can do that. We are very optimistic about the new system… We believe the quarterly pricing system will stay," said Jose Carlos Martins, Executive Officer for Strategy, Marketing and Business Development. INVESTMENTS IN AFRICA AND SUSTAINABILITY "We are right now investing heavily in Africa. Africa is a place that we really need to pay more attention in sustainability and social development, they need and deserve this attention and we are very pleased to be creating some opportunities for the local people. Some may say Africa is a risky continent but we understand very well the needs that they have, how we have to carry the investments there. So we don't see any problem there. We are very happy in Mozambique, Zambia and Kenya," mentioned Agnelli. "Everyone needs to learn which measures we can take to respect all environmental issues. Ten years from now no one will accept the level of water consumption we have today or the fuel emissions we have today. Everyone will ask for a clean energy, so every single project we are delivering is much more sustainable and cleaner. This is a challenge to every company and we're trying to be innovative to overcome these challenges," he added.