Sumitomo Corp., a Japanese conglomerate with global businesses spanning several industries such as mining, metal products, and transportation, has said that considering the increasing demand in Asia, its venture with Brazil's Usiminas may expand its estimated annual iron ore output by two thirds to 50 million mt, Bloomberg has reported.
According to Sumitomo's managing executive officer Toru Furihata, this would be an increase on the venture's plan to produce 30 million mt by 2015 up from 7 million mt, by expanding capacity at its mine in Minas Gerais state.
In July this year, Sumitomo agreed to acquire a 30 percent stake in Brazilian steelmaker Mineracao Usiminas for US$1.93 billion. The venture could further expand output by buying or developing mines, or paying royalties to producers near its project in the Serra Azul region, Mr. Furihata said.