(Reuters) - Brazil’s Vale, the world’s top iron ore producer, has achieved its target of halving net debt to $10 billion and will now focus on increasing returns to shareholders, Chief Executive Fabio Schvartsman told the Financial Times in an interview.
“There is nothing more than can or should be done,” Schvartsman said, adding buybacks were the best investment the company could make at the current time.
Vale did not immediately respond to a request for comment.
The company, whose cash flow has surged in recent quarters as iron ore prices rallied, has been mulling whether to spend those funds on diversification or remunerating shareholders through dividend hikes or buybacks, sources familiar with the matter told Reuters earlier this month.
Vale is scheduled to post its third quarterly earnings on Oct. 24.
Reporting by Vibhuti Sharma in Bengaluru; Editing by Sriraj Kalluvila