Monday, 01 Aug 2011|By Dow Jones Newswires
Ms Cythnia Carroll CEO of globally diversified miner Anglo American PLC said that global iron ore supply may catch up to demand around 2015 and 2016, but challenges in bringing new projects to fruition could possibly skew that timescale.
Ms Carroll told journalists that "Clearly that is not going to happen [In 2013 and 2014] because of the challenges in those projects.”
She said that China, which sits on the high end of the iron ore production cost curve, is increasing its production as an offset to the lack of supply.
Ms Carroll said global iron ore demand will rise 7% this year with Chinese iron ore demand rising 10% compared with 2010.
Iron ore projects are now located in areas that require significant investment in infrastructure such as rail, pipelines and ports. Furthermore, countries have more stringent environmental permitting processes, thus projects take longer to develop.
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