MetalBiz has cited Mr Zou Jian, the former president of China Metallurgical Mining Enterprise Association, as saying that in the long run the worldwide iron ore supply shows a trend of substantial growth.
In 2012, the increase in supply by iron ore mining enterprises in Brazil and Australia will reach 300 million tonnes and with China's able provide finished products mines at 100 million tonnes and new supply from other countries the global new added supply of iron ore will exceed 500 million tonnes.
Mr Zou Jian said that currently the three big ore miners are increasing investment in iron ore. Brazil's Vale is investing USD 59 billion for production over the next five years. About 30% of investment is to be used to exploit black mineral and the production capacity of iron ore will rise from 296 million tonnes in 2007 to 422 million tonnes in 2012, an increase of about 130 million tonnes. The Brazilian production capacity will reach 475 million tonnes and supply will increase bu about 140 million tonnes. Australian ore production capacity in 2012 will stand at 460 million tonnes, an increase of about 160 million tonnes.
In addition, West Africa, South Asia, Eastern Europe and other countries also have 30 million tonnes to 50 million tonnes of new iron ore capacity; China will also increase its overseas investment in around 50 million tonnes of iron ore supply. The increase of the finished product supply capacity in China will also exceed 100 million tonnes.
Source: Steel Guru
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