Brazilian iron ore producer Vale plans to expand its iron ore production, according to media reports.
According to media reports, the company’s CEO, Murilo Ferreira, said Vale will increase its capacity by 30 percent from 340 million mt to 450 million mt in two years. It will also provide more high-quality iron ore products to China, the executive said in Beijing, China this week.
Chinese strict environmental protection laws, which require steel producers to reduce emissions, may help the Brazilian producer to increase exports to the Asian country.
“Vale is happy to provide iron ore products with high iron content and low impurity, thereby helping the Chinese government fight pollution,” media reports said, quoting Ferreira’s comments.
While Vale’s growing output could potentially help it obtain more market share, the move could also lead the industry to a bigger iron ore glut.