Vale aims for 310Mt iron ore output in 2010 - Brazil

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Oct 2009

Brazilian miner Vale is shooting for iron ore output of 310Mt in 2010, CFO Fabio Barbosa said during a conference call. "Depending on the conditions of mines and logistics constraints we may reach nominal capacity of 300-310Mt depending on our ability to operate mines," Barbosa said. "But it's a challenge to operate at full capacity in any circumstance."
During the call, Barbosa voiced his confidence regarding the global minerals trade.
"We continue to be extremely confident and believe in a promising future," he said. "In fact, we haven't changed our mind about Vale's structural changes and that's why we have invested US$60bn in the last seven years. This shows a very important aspect about confidence in our future."
Of this total, organic growth represented 60%, he said.
Barbosa also referred to Vale's 2010 capex budget of US$12.9bn. About 76% of the budget is being allocated to research and development, and greenfield and brownfield projects, compared to an average of 71% over the last five years, the company previously reported.
"We have an impressive pipeline of projects which includes potash, phosphates and coal that will allow the company to grow for the next five years," he said.
According to Vale's last sustainability report annual iron ore production equals roughly 297Mt.

Source: Business News Americas