Vale seeks to build coal port in Australia as output gains

Friday, 24 Jun 2011

Bloomberg reported that Vale SA, the world biggest exporter of iron ore is seeking to build its own coal terminal in Queensland State as it expands production from three to nine mines in Australia.

Mr Steve Badenhorst Vale director of operations for Australia said Vale plans to apply to build one of the four new export terminals being planned as part of AUD 6.2 billion expansion at the Abbot Point coal port.

The North Queensland Bulk Ports Corp said Vale is spending USD 24 billion globally this year on resources investments including developing coal mines in Colombia and Mozambique. The deadline to lodge expressions of interest to build the Abbot Point terminals closes on August 1.

Mr Badenhorst said “We want coal to be the third-biggest revenue stream at Vale, behind iron ore and fertilizer. Much of our investment is in infrastructure.”

Morgan Stanley last month forecast a buoyant pricing environment for coal for most of the next five years as economic growth in Asia boosts demand and rail and port bottlenecks keep supply tight. (sourced from Bloomberg)