New Wisdom Investment Limited

Vale Will Increase Production of 30 Million Tons Iron Ore Next Year

(Nov 16, 2016)

Vale is expected production of about 3.4 tons in 2016, and was the same as last year. It plans to guide production increased to between 3.6 tons to 3.8 tons. However, the vale insiders pointed out that the plan has not yet been approved by the board of directors.

Vale Will Increase Production of 30 Million Tons Iron Ore Next Year

If the production plan was eventually approved by the board of directors, it means that the Vale in 2017 will increase production of about 30 million tons of iron ore, compared with 2016 increase of about 8.8%.

Vale is the world's largest iron ore and pellet producers. Together with BHP Billiton and Rio, people called it “three mines”. China is the largest customer of Vale, and most of the Vale’s output of iron ore was exported to China.

"Vale is confident about the future of the Chinese market." China's chief executive officer Jiu An, said in an interview with reporters. He believes that gradual deepening of the supply-side reform in China, leading low-grade iron ore of small steel mills closed. Increase production efficiency and large-scale blast furnace makes the demand for high grade iron ore, and will be increasingly larger and larger. "In high grade iron ore, we are almost the only manufacturer." Jiu An said.

Jiu An said, Vale will seek to expand the share of the Chinese market in the future. At present, Vale's market share in China is about 15%, lower than rivals Rio Tinto and BHP Billiton. "We have a huge potential to expand our market share in China," said Jiu.