VALE Is Expanding Into Fertilizers With $1bn Stake in Fosfertil (Equities Analysts view)
This is great news. Our favorite mining company in addition to a dominant position in the iron ore markets they have deftly expanded into other minerals and now fertilizers. Vale’s Finance Director, Fabio Barbosa, stated, “Our perception is that the rapid per capita income growth in emerging markets will have a big impact on demand for protein, so there will be a structural shift in the demand for [fertiliser] which has only limited supply.” Per capita income growth in big emerging economies is the theme song for all of our investments! As investors, we can buy better value at a better price and lower risk than developed markets.
It will also be very interesting to see if Vale begins purchasing their own ships in order to deliver ore to spot markets instead of relying on customers to collect.
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