Vale SA responds to criticism regarding its track record in Canada

It seems that Vale SA responded to some criticism regarding its track record in Canada. From Reuters: "Vale SA plans to spend more than $10 billion over the next five years to expand its operations in Canada, an investment that may soothe critics of the Brazilian mining giant's track record in the country."


Expect other jurisdictions to follow closely activities in Canada with a view to extract more value from the Mining Industry. The Mining Industry is an easy target while metals prices are high.


Potential options that different countries will explore include:

• Higher taxation models (e.g. Australian model)
• Net benefit models (e.g. Canadian model that requires any acquisition to result in net benefits)
• Joint ownership models (e.g. Botswana model, where government owns portion of mining companies)
• Nationalisation models (Venezuelan model)

 Regards
Pieter