Vale says huge iron-ore expansion needed globally to replace old mines

Luiz Meriz, president of Vale Minerals China

BEIJING – A huge expansion of global iron-ore output is needed as older mines become depleted, a senior executive of Brazilian miner Vale SA said, adding that the company's medium-term strategy was to maximise production at its mines.

Luiz Meriz, president of Vale Minerals China, also told at an industry conference in Beijing on Tuesday that the company was in talks with countries around the world, including Japan and South Korea, to dock its fleet of Valemax giant ore carriers, which range from 380 000 to 400 000 t in size.

"Our strategy is to continue maximising output even when supply becomes more balanced in future," Meriz said.

Meriz said Vale had invested $15.1-billion between 2010-2011 to boost production and to raise operational efficiency. It is looking to its Valemax vessels to better compete with Australian rivals Rio Tinto and BHP Billiton. Read more here...