Vale profits plummet 84 per cent

Vale's net profits sank 84 per cent in its second quarter compared to a year earlier.

Net income fell to $424 million, or eight cents per share, from $2.64 billion, or 52 cents, a year earlier, according to media reports.

The Brazilian mining giant blames the losses on low commodities prices and a sharp depreciation in the local currency. The Brazilian real lost around 10 per cent of its value against the U.S. dollar over the quarter.

"This reduced net income doesn't mean that the company is, you know, in a worse situation," Chief Financial Officer Luciano Siani said, in a video on the company's website. "It's just an accounting effect."

A press release from Vale called its financial performance “solid” amidst “an environment of below-trend global economic growth and declining minerals and metals prices.”

“We are executing our business plan, which provides exposure to a large world-class natural resource base and multiple opportunities for shareholder value creation, underpinned by a greater focus on cost and capital management discipline, financial strength and an efficient logistics infrastructure,” the press release said.