Vale on iron ore price: after hitting 2-year low, the only way is up

Bloomberg reports Rio de Janeiro-based Vale SA, the world’s largest iron-ore producer, said prices for the raw material have stabilized and are recovering from “rock bottom” levels as a result of lower-than-expected production and strong demand from China, India and South America. Iron ore for immediate delivery has gained 8% to $126.30 a tonne since reaching its lowest level in almost two years at the end of October. During the month iron ore prices crashed almost 30% forcing the big three – BHP, Vale and Rio Tinto control nearly 70% of the 1 billion tonne annual iron ore seaborne trade – to renegotiate quarterly contracts with Chinese buyers to bring values more in line with the spot price.

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Frik Els | November 8, 2011 | 11:53 pm

Amid falling prices, Vale confident of iron ore upside

The recent softening of iron ore prices will likely be short-lived, says the world's largest exporter of the steelmaking ingredient. In releasing its third-quarter results, Brazil-based Vale SA (NYSE:VALE) is forecasting high prices "for a long period ahead" because of growing demand from developing countries and constraints to supply growth. The iron ore giant therefore indicated it needs to stay ahead of the game for when the price rise demands a quick reponse:

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Andrew Topf | October 28, 2011 | 11:13 pm

China steel mills force Vale to bend over iron ore pricing

The world's number one iron ore producer Vale is considering shifting from iron ore pricing based on the previous quarter’s prices to levels more aligned with the spot price the company's chief executive said on Tuesday. The Brazilian company's new willingness comes after more Chinese steel mills seek to postpone shipments or default on contracts as spot iron ore prices drop from historic highs above $170 to levels of around $150. BHP, Vale and Rio Tinto control nearly 70% of the 1 billion tonne annual iron ore seaborne trade and dominate price talks which in the past were characterized by secretive negotiations and annual contracts. Just last week global number one miner BHP Billiton announced plans to create a new, more transparent system for pricing iron ore called Global Ore by the end of the year or early next year.

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Frik Els | October 18, 2011 | 7:12 pm

Strict environment rules for Vale’s new $1.3 billion Malaysia iron ore mine

At a ground breaking ceremony the State Chief Minister assured Malaysians that the development of the 180ha iron ore project in Teluk Rubiah, Manjung – a popular tourist area – will not bring any detrimental environmental impact as there will be stringent Environmental Assessment Impact (EIA) procedures to be followed. Brazil's Vale is investing an initial US$1.37 billion, or RM4.07 billion, to develop the first phase of an iron ore complex with capacity to dock vessels and handle as much as 30 million tonnes of iron ore a year, starting in the first half of 2014.

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Perak News | October 8, 2011 | 10:06 pm

Vale to concede 35% of Simandou to Guinea

Vale SA will likely hand over 35% of its Simandou iron ore project to Guinea. The Wall Street Journal (sub required) is reporting that Vale, one of the top three producers of iron ore, is working on an accord whereby the company concedes 35% of the Simandou project to the Guinean government. The accord falls in line with the country' new mining laws, which allow the government to increase its stake in mining projects from 15% to 35%.

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Andrew Topf | October 3, 2011 | 8:57 pm

Amazon caves may block Vale iron ore mine

Vale, the world's second-largest mining company, may be unable to develop a massive new iron-ore mine in the Amazon after archeologically and environmentally sensitive caves were found at the site, the Estado de S. Paulo newspaper reported on Sunday. The

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Sydney Morning Herald | October 2, 2011 | 8:13 pm

Vale, BNDES and Logos Tecnocom develop unique pig iron production technology in Brazil

Following extensive research that began more than 35 years ago, Tecnored Desenvolvimento Tecnológico, a Vale company, in partnership with Brazil’s development bank, BNDES, and Logos Tecnocom, has started up the first pig iron demonstration plant that does not use traditional blast furnace methods, in Pindamonhangaba, São Paulo state. The innovation enables higher productivity, lower emissions of CO2 and particulate matter, the flexible use of raw materials, and a reduction of up to 30% in the cost of steel production.

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International Mining | September 26, 2011 | 7:14 am