VALE REDUCES DIVIDEND AND WILL PAY US$ 500 MILLION

Vale SA became the latest commodities giant to take a scalpel to its dividend as a rout in metal prices deepens.

The world’s largest iron-ore and nickel producer said Monday it aims to pay $500 million for the second tranche of its 2015 dividend, half the $1 billion the company proposed in January. If the new target is approved by Vale’s board in an Oct. 15 meeting, the company will be handing out $1.5 billion in dividends for this year after having made a $1 billion payment in April.

The reduction in the second dividend installment reflects “the more uncertain scenario for mineral commodities prices and the focus on managing the balance sheet," Vale said in a statement.