Wednesday, September 24, 2014

Iron ore trade to grow 35% over five years

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Thursday 25 September 2014
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Top iron ore miner Vale expected claw back market share from Australian competitors thanks to its Serra Sul mine and use of Valemax mega-carriers.

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Bubble chart shows heavy reliance on iron ore and oil for revenues and profits post demerger.

Mega-carriers docking in China will see Brazilian giant Vale double export volumes to China over the next five years.

New company would still have its primary listing in Australia, with secondary listings in South Africa and the UK.

Canadian Prime Minister Stephen Harper this week announced the discovery of one of two ships that comprised Sir John Franklin's ill-fated expedition in 1845, which aimed to discover a northwest passage across the top of North America. The announcement will revive interest in the metals wealth of the Arctic and its ownership.

Shanghai Metals Market warns slim profits and continuous declines in steel prices have dampened Chinese mills' appetite for iron ore.

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Fresh data suggests it is still too early to celebrate a recovery in the sector.

Lowest since September 7 2009

Iron ore is the lifeblood of industrial development with China's 'build it and they will come' policy driving prices to a high of over $180 per tonne in 2011. Flash forward and iron ore prices have slumped to break below $80 per tonne, the lowest level in 5-years.

Companies said over-staffing in the current environment was threatening the viability of their Australian operations.

Miner Anglo American said on Wednesday it won environmental regulatory approval to operate the slurry pipe at its Brazilian iron-ore project Minas Rio, a crucial step in meeting a deadline to enter production by the end of the year.

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