Vale CEO says always looking at possible buys

By Laura MacInnis

ST. PREX, Switzerland (Reuters) - Brazilian iron ore miner Vale (VALE5.SA)RIO.N has a strong balance sheet and is always analyzing acquisition opportunities, Chief Executive Roger Agnelli said on Thursday.

"We have been growing. The company is in a very good moment, and of course we have a very strong balance sheet," Agnelli told journalists at an event marking the start of construction of a Vale building in St. Prex, Switzerland.

"One of our main activities is to analyze opportunities," he said of potential acquisitions, though he declined to comment on specific prospects.

Vale said earlier this week it was not interested in buying all of local base metals group Paranapanema, but has considered buying its copper smelter Caraiba Metais and its fertilizer unit Cibrafertil.

Vale has been branching out aggressively into other metals in recent years to diversify its revenue base. In 2006, it paid $18 billion for Canadian nickel producer Inco.

This year, it tried and failed to buy Swiss-based rival Xstrata (XTA.L) in a deal that some valued as high as $90 billion, after which analysts said Vale would likely focus on smaller acquisitions.

Agnelli said he had a "very long and very open relationship" with Xstrata executives but there have been no further discussions about a takeover or merger.

"They have their strategy and we respect that, we have our own strategy and they respect us. That's it," he said.