Vale SA Iron Ore Producers Sure China Demand Continues
External News - 16 Feb 2018
China's aggressive campaign to clean the air by pressing polluted steel mills is predicted to continue to drive the need for high-grade iron ore to increase productivity and limit emissions. That opens a wider door for high quality iron ore suppliers, such as Vale SA.
Vale SA Chief Executive Officer (CEO) Fabio Schvartsman said that China's continued efforts to reduce pollution would increase demand for its high-quality iron ore, even as the world's top iron ore producers sought to diversify from the metal.
"I can't imagine China returning to control the pollution it is trying to do. They will do everything possible to check pollution. And that guarantees their request, "Schvartsman said, as reported by Reuters on Wednesday (1/31/2018).
One of the largest mining companies in the world plans to lift iron ore exports by 7% to 390 million tons in 2018.
Nevertheless, Schvartsman said, the company will try to reduce the percentage of revenues derived from iron ore from 90% to 70% at this time in line with its efforts to diversify.
Vale SA has been relying on iron ore sales for a portion of their income, although it is rumored to diversify more into other industrial raw materials, such as copper, aluminum and coal.
"This company began to become truly truly diversified," continued Schvartsman.
