The world's largest iron ore producer, Brazilian miner Vale, has announced that it plans to invest about $4.4 billion by 2013 in expanding its iron ore capacities by 50 percent. The company is planning to increase its output to 422 million mt by 2012 and to 450 million mt by 2013.
Depending on the potential increase in demand for iron ore from China, Vale may expand its production capacity even further. "We have another 26 projects to be implemented on the back of market demand", Fidel Blanco, international iron ore sales director of the company, said.
As for its domestic market, Vale is planning to help boost iron ore demand in Brazil by participating in the development of steel plants. The miner has signed a deal with China's Baosteel for such a plant. However, Vale has declared that it is not exactly going into the steel business but just aims to develop the national market.