Sydney: Capesize owners are looking at a surge in tonne/miles. Australia's Herald Sun reported that iron ore rival Brazil has challenged Australia, unveiling a US$27 billion plan to nearly double production of the steel making ingredient amid surging Chinese demand.
Paulo Camillo Penna, president of the Brazilian mining institute Ibram said that the investment would increase the nation's annual iron ore output to 650 million tonnes from 350 million tonnes over the next four years. That compares with Australian iron ore output of about 290 million tonnes this financial year and projected production of 489 million tonnes in 2012-13.
Vale the world's second largest miner after BHP Billiton and the biggest iron ore producer is expected to account for about 450 million tonnes of Brazil's forecast iron ore production in 2012.
The news marks an escalation in the already fierce rivalry between Australian and Brazilian iron ore producers, as both parties compete for a bigger share of the all important Chinese market. Vale recently placed a record $2bn order for up to 20 VLOCs at China's Rongsheng Heavy Industries in light of its forthcoming production expansion. [2/6/08]
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