Brazilian miner Companhia Vale do Rio Doce (Vale), the world's biggest iron ore producer, may further cut production as demand continues to fall.
Commenting on the issue, Vale CEO Roger Agnelli stated, "We are always adjusting to demand. If demand gets worse there is always the possibility of additional cuts to metals output," adding that he does not expect further production cuts in the short term.
Vale cut its output of iron ore by about 10 percent in November 2008 to match declining demand. The cut prompted the company to lay off 1,300 of its 62,000 workers in December and start a staggered paid-leave system for an additional 5,500.
On the other hand, Mr Agnelli said the company's iron ore sales to China should be stable in 2009, stating, "I see only a slight decrease in Chinese production in 2009."