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Vale, the world’s largest iron ore producer, has become the latest major mining group to announce a return to profit in 2016, as the world’s largest iron ore producer benefited from a rebound in iron prices.
Revenues at the Brazilian group increased 14.7 per cent to $29bn, generating a net income of $4bn, compared to the previous year’s $12bn loss.
Adjusted earnings before interest, tax, depreciation and amortisation jumped by 72 per cent, to $12.2bn.
The company said steel demand in its key Chinese market improved during the year, propping up iron ore imports, and said that demand “is expected to remain firm” in 2017.
Earlier this week, the company’s leading shareholders agreed to dissolve a longstanding pact controlling the company, in an effort to improve transparency at the group.