Brazil: Vale forecasts 10 pct rise in iron ore sales to China

3 April 2008

Beijing, China, 3 April – Brazilian mining giant Vale (formerly Companhia do Vale do Rio Doce – CVRD), has forecast that it will sell over 100 million tons of iron ore to China this year, or 10 percent more than in 2007, the chairman of the company’s Chinese branch said Tuesday in Beijing.

Vale, which is the world’s largest iron producer, reached an agreement in February with China’s steel makers for a 65 to 71 percent price rise for the product.

Michael Zhu, the chairman of Vale China, added that Vale was in talks to set up several iron ore pellet production units in China, in the cities of Rizhao, Anyang and Caofeidan, the municipality in which the Shougang Group, one of the country’s largest steel makers, is based.

In January, Vale launched operations at a pellet production unit in Zhuhai, in Guangdong province, with an annual capacity of 1.2 million tons.

Vale produced 295.9 million tons of iron ore in 2007, of which 96 million were sold to China. (macauhub)