CHARTS: The coming critical minerals trade war is BRICS short of a load
"While a large number of countries around the world continue to talk about securing raw material supply, China is actually doing something about it."
Brazilian miner Vale (NYSE: VALE), the world’s biggest iron ore firm, is considering more non-core asset sales by the end of the year, but it is also working on a deal that could shock the market, said Chief Executive Murilo Ferreira yesterday.
After a speech at the Brazilian Mining Congress, the executive told reporters Vale was evaluating whether to sell its 22% stake in aluminum producer Norsk Hydro ASA (STO:NHYO), as well as its 40% stake in Brazilian bauxite miner Mineracao Rio do Norte SA. The company is also evaluating what to do with its remaining oil and gas assets.
“We also have a surprise that I won’t mention so you remain curious,” Ferreira told reporters Tuesday, after a speech at the Brazilian Mining Congress, according to Bloomberg.
Iron ore prices to hold
The miner is quite bullish about global iron prices, as it sees demand from China, the world’s top iron ore consumer, likely to moderate next year.
The executive director for ferrous and strategy, Jose Carlos Martins, said Wednesday the firm was expecting prices to be in range of $120-$130 a tonne in the fourth quarter.
The Rio de Janeiro-based firm has been selling assets, cutting investments and putting projects on hold as falling metal and mineral prices led last year to its lowest annual profit since 2009.
Since iron ore prices fell to a three-year low in September last year, the mining giant has put its $1.26 billion Zogota project in Guinea’s Simandou on hold last October and, earlier this year, it halted work indefinitely at its $5.9 billion potash project in Argentina.
In addition, the company is also said to be selling its Canadian $3bn Kronau potash project, after putting it on hold last year.
Iron ore traded in 2012 as high as $150 a tonne and as low as $87.50 a tonne, making it one of the worst performers in the international commodities market.
6 Comments
Steve
So, they post the worst result in 10 years, then think the iron ore price will hit nearly the highest price ever coming up. Convenient. One thing no one has explained to me is how, if Vale, Rio and BHP are still all expanding their iron ore capacity, and China has surpassed their consumption rate of iron ore, how does the the price continue to go up?
TSHILANDE TSHILISANANI
I am in south Africa I would like to know the price of iron per ton in Rands
TSHILANDE TSHILISANANI
I have lumpy iron ore for sale help me get customer it contains Feo (68.8%)
andyprigge
I pray that those nazi sympathizers will sell vale inco to a non nazi organization.
Waz
Grade is king! Oz has some of the highest grades of Fe ore in the world, of course Africa has got high grades too, but lack of infrastructure & sovereign risk is a real show stopper!
FRUSTADE GEOLOGIST
COME BACK SIMANDOU PROJECT .. I MISS MY DOLLARS !!!!!!!!!