Brazilian Mining Company Vale Increases Iron Ore Output For China
“In 2010 crude steel production set a new record of 1.4 billion tons, with all major steel producing countries reporting double digit growth. This was 15% higher than 2009 when steelmakers operated at lower capacity utilization levels. While Asian countries account for the majority of the world steel output, China alone accounts for 626 million tons or approximately 45% in 2010, steelmakers in the EU (24.5%) and North America (35.7%) reported the highest growth rates in 2010,” according to the MID-SHIP report.
The report also said that “Brazilian mining company Vale will increase output 50 percent to 450 million tons by2015 to satisfy strong demand from China, the largest iron ore consumer, said Vale Minerals China president Luiz Meriz at the Asian Financial Forum in Hong Kong.
He said that Vale is making large investments to increase iron ore production to satisfy growing Chinese demand, as the iron ore producer aims to expand its presence in Asia following its debut on the Hong Kong stock exchange in December.
Meriz said that because the majority of Vale’s reserves are located far from Asia, the company is beefing up investment in logistics. Vale will set up a fleet of more than 20 ships with a capacity of 400,000 tons each shuttling between Brazil and China.”
When reporting on China, MID-SHIP said that “Wuhan Iron and Steel (WISCO) will pay C$120 million (US $121.5 million) for Canadian iron ore assets. Wuhan Steel, known as WISCO, has reached an agreement with Adriana Resources Inc. to acquire 60 percent in a joint venture which will develop Adriana’s Lac Otelnuk and December Lake iron ore properties in Quebec in Canada. WISCO will also receive a 19.9 percent stake in Adriana under a private placement, the Canadian firm said after the close of the Toronto market on Monday.”