Anglo—Ferrous Brazil wants to place Amapá ore on Chinese market as of 2010

11 September 2009

Rio de Janeiro, Brazil, 11 Sept – Anglo-Ferrous Brazil hopes to sell the iron ore it produces in the state of Amapá in northeastern Brazil to China as of 2010, website Valor Online reported Thursday.

In order to secure exports to China the company is looking into the possibility of sending the ore by ship from the neighbouring state of Pará from a port with a capacity to load 150,000 tonne ships.

Currently Anglo-Ferrous Brazil exports its production from the city of Santana, in Amapá, at a port with a maximum capacity for ships of 40,000 tonnes.

The chairman of the subsidiary of Anglo American, Stephan Weber, said that, due to issues of scale, he cannot place ships of this size on the Chinese market and current production in Amapá – which in the fourth quarter is due to reach an annual rate of 3 million tonnes – is headed for the Middle East and Europe.

“We have sold some things to China, but the freight is not very competitive,” Weber noted, adding that Vale already operates with Very Large Ore Carriers (VLOCs), with capacity for 350,000 tonnes.

Weber said that his company’s target in China would be “second and third level” companies, or smaller steel works.

“They will only order a ship every three months, but the advantage is that there are many of those small companies in China and we can sign long term contracts,” Weber said.

The company’s aim is to increase production capacity in Amapá to 4.5 million tonnes per year and may increase that to 6.5 million tonnes per year in 2012 or 2013. (macauhub)