• Categories
  • Archives

Brazil’s Mining Giant Vale to Charge Chinese and Japanese 11% More for Iron Ore

Train from Brazil's Vale The world's largest iron ore miner, the Brazilian Companhia Vale do Rio Doce, said it is negotiating price increases with its clients in Asia to put them at the same rate as European customers.

The Rio de Janeiro-based firm said reference prices for Asian clients are 11 to 11.5% less than those charged European clients depending on the type of iron ore that is purchased. In a statement, the Brazilian company said the talks are ongoing and there is no guarantee it will succeed.

However, if it is successful, Vale said the price hike would translate into an estimated revenue increase of less than 3% of the US$ 35.5 billion revenue Vale posted for a 12-month period that ended June 30.

For Pedro Galdi, an analyst from the SLW brokerage house, the Chinese and Japanese will have to say yes to the new prices: "They will be forced to accept because there is no abundance of iron ore in the market. It's take it or take it."

In related news the Brazilian Institute of Mining, Ibram, said on Wednesday, September 10, that mining investments in Brazil are expected to grow to US$ 57 billion in the next four years from the current 42 billion.

On the top of the list to receive investments from 2007 through 2011 is the iron ore sector, followed by nickel and aluminum, the institute said in its fifth revision in the past two years of its four-year forecast.

Brazil's Vale, the world's largest iron ore miner is the main producer on the local market, but large and small international miners are present in Brazil. Specialists in mining say most of the investments will be directed toward expanding capacity to attend to demand on the international market.

In 2006, total mineral output from Brazil amounted to around US$ 36 billion according to Ibram estimates.

Brazil accounts for about 19% of the world's iron ore, 14% of the world's aluminum, 40% of the world's manganese and 95% of the world's niobium, as well as several other minerals, according to Ibram.

Mercopress/Bzz

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

40 Years Off Key

That’s Bossa Nova It’s Quite Natural How did bossa nova start? It would be ...

Brian Smith, president of Coca-Cola of Brazil with the Brazilian line of products

Coca-Cola Is Betting on Brazil’s Thirst

When the political crisis in Brazil first gave signs that it would be around ...

Every 15 Seconds a Brazilian Woman Suffers Violence

Approximately 40,000 Brazilian women from all over the country gathered in  São Paulo on ...

It’s Official: Bank of Brazil Opens Branch at Emirates Towers in Dubai

Banco do Brasil (Bank of Brazil) is going to officially inaugurate its representation office ...

John of God

Brazil’s John of God: Healing with the Help of Angels

A new book, Spiritual Alliances: Discovering the Roots of Health at The Casa de ...

Brazil’s Giovanna Shoes Discovers the Arab Market

The shoes manufacturer Sandálias Giovanna, from the southeastern Brazilian state of Minas Gerais, is ...

Bird Flu Prompts Brazil to Reduce Chicken Breeding by 20%

Brazilian companies linked to the chicken supply chain, the country’s second largest agribusiness sector ...

The Brazilian Challenge

By Brazzil Magazine When in 1865 in Salvador da Bahia some fourteen doctors started ...

War on Impunity Has Won a Battle, Says Brazil

The ombudsman of Brazil’s Special Secretariat of Human Rights (SEDH), Pedro Montenegro, considers the ...