Date
20 July 2018

Vale sees 1.1 bln tons China iron ore sales in 6 yrs, paper says

Brazilian miner Vale SA expects to sell 1.1 billion tons of iron ore to China in the next six years, Shanghai Daily reported on Monday. The world’s largest ore producer is certain of meeting that target because China’s demand will remain strong enough to justify Vale’s huge expansion plan despite a slowing economy and government efforts to tackle overcapacity in the steel industry, the report said, citing a senior executive. “Cutting capacity doesn’t mean cutting production,” Jose Carlos Martins, executive director for ferrous operations and strategy at Vale, was quoted as saying in an interview Saturday in Shanghai. “Production in China will not decline but be more efficient.” Vale, which hasn’t expanded its capacity over the past five years, is now seeking to boost annual capacity by 50 percent to 450 million tons by 2018 in a US$35 billion push.

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