Vale profits expected to drop 30%

Vale is expected to report a 30-per-cent drop in second-quarter profits Aug. 7, according to the average preliminary estimates of seven analysts surveyed by Reuters.

Most of the decline is due to a 12-per-cent drop in average iron ore prices and a 38-per-cent decline in nickel prices, more than offsetting increases in volumes shipped by the world's No. 1 iron ore miner and No. 2 nickel producer.

Its shares have been the worst performer among the world's big five mining companies, down 27 per cent this year, despite a rally from nearly four-year lows in July.

Of the big five, Rio Tinto, Brazil's Vale, Glencore Xstrata and Anglo American are expected to report sharp drops in profit.

They have been slammed by weaker copper, iron ore and coal prices as they struggle to sell off assets.