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UPDATE 1-Vale to use cash flow to pay dividends, reduce debt -CEO

UPDATE 1-Vale to use cash flow to pay dividends, reduce debt -CEO
From Reuters - December 4, 2017

RIO DE JANEIRO (Reuters) - Brazils Vale, the worlds top iron ore producer, will use cash flow, which could reach $14 billion or $15 billion this year, to cut debt and pay dividends, Chief Executive Officer Fabio Schvartsman said on Monday.

Speaking at an event in Rio de Janeiro, Schvartsman said the miner tended to generate $14 billion or $15 billion in cash in good or normal years, adding that 2017 was normal.

The first thing we are going to do with the cash is pay debt, and then we are going to make this companys shareholders happy as never before, Schvartsman said, without specifying a time frame.

Schvartsman said that cash generation could also help the companys debt rating and noted that paying very high dividends was becoming company policy. It is not our goal to keep cash, he added.

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