Brazil-based miner Vale has stated that it estimates that current global iron ore prices stand in the range at $100-120/mt, adding that decline in iron ore prices is driving some high-cost producers out of the market.
At the same time, Vale is going ahead with its mine expansion plans, with an output estimate of 320 million mt of iron ore in 2013.
Iron ore prices have declined to a three-year low, standing below $87/mt in September as weakening steel demand in China hit the raw material market. Prices have since rebounded above $100, but remain 30 percent below this year's peak.
However, Vale is not worried over the falling iron ore prices. "Being a low-cost producer and being focused on cost and quality, we believe that, no matter the growth, we see space for our company, our projects and our ore to get the market," said Jose Carlos Martins, executive director of Vale's ferrous and strategy division.