Saturday, 28 Jan 2012
Brazilian miner Vale SA is granted an operation license to mine a high grade iron ore pit at Carajas in north Brazil.
The license, granted by environmental authorities, will allow Vale to mine the N5 Sul pit, which is part of the N5 mine in the Serra Norte mining site at Carajas in Para state. This operation will support quality enhancement in iron ore production in Carajas in coming years.
Mr Tito Martins CFO of Vale said that the company is seeking to bring new iron ore reserves into production as reserves at some of its long standing mines, particularly in southeast Brazil, become depleted, reducing the iron content of the ore produced. Iron ore is the key raw material in steelmaking.
Carajas, where Vale already has extensive mining operations, has some of the world's highest quality iron ore reserves but its location in the Amazon has made environmental licensing a challenge in recent years.
The operation license now granted allows the opening of a new ore body in the N5 mine, which has the highest ferrous content within Vale's portfolio, strengthening Vale's position as a producer of high quality iron ore to global markets.
(Sourced from Dow Jones Newswires)
Showing posts with label Brazilian mining company. Show all posts
Showing posts with label Brazilian mining company. Show all posts
Saturday, January 28, 2012
Thursday, December 22, 2011
Vale looking to sell Valemax iron ore carriers - Report
Thursday, 22 Dec 2011
Vale is looking to sell off its large iron ore carriers amid fierce opposition from Chinese ship owners and embarrassing teething problems as the second largest mining company shifts its focus back to core projects.
Mr José Carlos Martins Vale executive director for iron ore and strategy said that the Brazilian company would sell its so called Valemax most of which have not yet been built, if it could take long term leases on them.
The multi billion dollar plan to control shipments to China by building 35 ships with decks the size of three football fields the biggest dry bulk carriers ever was dreamt up by Mr Roger Agnelli, Vale former headstrong chief executive but it has faced heavy criticism since.
None of the new carriers has been able to dock in China, Vale biggest market, because of opposition from local Shipowners and technical difficulties while a mysterious leak aboard the Vale Beijing on its maiden voyage this month has raised safety concerns.
The move to sell the ships also comes as Mr Murilo Ferreira Vale new more cautious and diplomatic chief executive is reviewing spending on all projects to help strengthen the company finances in the face of falling commodity prices.
Mr Martins said “It’s really all about capital allocation. We prefer to invest our capital in mining and contract the ships instead, declining to comment on whether negotiations were already under way. There is no reason we actually have to own them.”
Vale began placing orders in 2008 for the 35 Valemax of which it planned to own 19 in an attempt to control the price it paid to move its iron ore to China after years of wild gyrations in charter prices. Rates per day for capsize ships the largest dry bulk carriers reached as high as USD 233,988 per day in June 2008 but subsequently plummeted by December that year to as low as USD 2,400.
(Sourced from www.ft.com)
Vale is looking to sell off its large iron ore carriers amid fierce opposition from Chinese ship owners and embarrassing teething problems as the second largest mining company shifts its focus back to core projects.
Mr José Carlos Martins Vale executive director for iron ore and strategy said that the Brazilian company would sell its so called Valemax most of which have not yet been built, if it could take long term leases on them.
The multi billion dollar plan to control shipments to China by building 35 ships with decks the size of three football fields the biggest dry bulk carriers ever was dreamt up by Mr Roger Agnelli, Vale former headstrong chief executive but it has faced heavy criticism since.
None of the new carriers has been able to dock in China, Vale biggest market, because of opposition from local Shipowners and technical difficulties while a mysterious leak aboard the Vale Beijing on its maiden voyage this month has raised safety concerns.
The move to sell the ships also comes as Mr Murilo Ferreira Vale new more cautious and diplomatic chief executive is reviewing spending on all projects to help strengthen the company finances in the face of falling commodity prices.
Mr Martins said “It’s really all about capital allocation. We prefer to invest our capital in mining and contract the ships instead, declining to comment on whether negotiations were already under way. There is no reason we actually have to own them.”
Vale began placing orders in 2008 for the 35 Valemax of which it planned to own 19 in an attempt to control the price it paid to move its iron ore to China after years of wild gyrations in charter prices. Rates per day for capsize ships the largest dry bulk carriers reached as high as USD 233,988 per day in June 2008 but subsequently plummeted by December that year to as low as USD 2,400.
(Sourced from www.ft.com)
Tuesday, December 13, 2011
Iron ore contract move may boost paper hedges for clients: Vale
Tuesday, 13 December 2011
Brazil's Vale expects that a move to price iron ore using spot prices in the same period of shipments could boost paper hedging by clients, but the world's biggest supplier will refrain, for now.
Vale is seeing how the swaps market is evolving, while it agrees to move most customers away from the quarterly lag price system for term contracts.
Trading company analysts point out that the pricing shift would need more risk management, and increase administration as a known fixed price for a three-month period is lost.
"We don't hedge," Jose Carlos Martins, Vale's executive director of iron ore and strategy, told reporters in London on Wednesday. "If the market becomes liquid and you have financial instruments...it will be mainly played by customers."
The new contracts switched from a fixed price accord based on the previous quarter with one-month lag system, that, for example, used June to August values to price Q4.
Vale said there is no going back for customers switching to price basis current quarter from the quarterly lag system.
Vale CFO Tito Martins said he didn't think there was enough liquidity in the short term to allow it to happen on a grand scale, as up to 80% of Vale's customers switch to pricing iron ore on current quarter average and even shorter benchmarks such as monthly and pure spot-based pricing.
The executives pointed out the difficulties of hedging a range of different iron ore products around a set marker, which would ensure greater liquidity.
Vale produces many higher iron content products than the 62%-Fe fines concentrate grade used as a benchmark in the physical market Platts and others publish.
One market analyst said that current quarter pricing would encourage more participants into the paper trading market. He also pointed out that it is more difficult for steel mills and miners to issue letters of credit for trade based on a floating price until settlement at the end of each quarter. Another source agreed, and said he expected more paperwork as a result.
The analyst said as Vale is the largest and more conservative than BHP Billiton and Rio Tinto that make up the top three global suppliers, the pricing mechanism change with large steel mills would likely lead smaller players in the industry to follow.
That means the "whole iron ore pricing system is based on a uncertain/floating value," he said.
NEW SYSTEM ALLOWS Q1 UPSIDE
Vale executives admitted it would be hit by a 20% or so lower price based on the quarterly average to date for newly revised contracts. This switch is likely to result in well over $1 billion in lost revenue, based on expected shipment volume and prices to date.
Vale's Q4 prices under the old system should have stayed flat to Q3, based on analysis by Platts.
However, if prices rise in Q1 2012 by more than the $155.794/dmt CFR North China average generated by benchmark Platts IODEX prices between September to November that would be used under the old system, Vale is betting it can recoup at least part of the loss from customers making the switch. Platts assessed IODEX 62%-Fe at $141.25/dmt CFR North China on Thursday.
Jose Carlos Martins said the market may stay in the $140-150/dmt CFR North China range for the time being, but believes the price will move up in the future.
The analyst said that even after the loss by the structural price change, Vale still makes large profits compared to mills in China that are losing money or at just breakeven.
He forecast Vale's iron ore fines and pellet export volume at around 68 million mt in Q4.
For Rio Tinto, the world's No. 2 iron ore miner and largest supplier from Australia, it too has already moved more towards spot prices. A November 28 company presentation shows about a third of sales remaining on the previous quarter with one month lag pricing basis, with the rest a mix of current quarter, monthly-prior and monthly actual, and spot.
In October, Rio Tinto said 86% of sales in the third quarter were based on historic "quarterly lagged" prices.
Rio Tinto's iron ore sales in Q3 totaled 60 million mt on a 100% project basis, based on the group's operational review.
As for BHP Billiton, the miner has been the most aggressive in pushing for short-term spot-based pricing in iron ore, as well as coking coal and other commodities. While the miners captured a change in pricing helped by China's expanded appetite for imports, it has increased volatility as Japanese-led benchmark pricing now becomes the exception.
Source: Platts
Brazil's Vale expects that a move to price iron ore using spot prices in the same period of shipments could boost paper hedging by clients, but the world's biggest supplier will refrain, for now.
Vale is seeing how the swaps market is evolving, while it agrees to move most customers away from the quarterly lag price system for term contracts.
Trading company analysts point out that the pricing shift would need more risk management, and increase administration as a known fixed price for a three-month period is lost.
"We don't hedge," Jose Carlos Martins, Vale's executive director of iron ore and strategy, told reporters in London on Wednesday. "If the market becomes liquid and you have financial instruments...it will be mainly played by customers."
The new contracts switched from a fixed price accord based on the previous quarter with one-month lag system, that, for example, used June to August values to price Q4.
Vale said there is no going back for customers switching to price basis current quarter from the quarterly lag system.
Vale CFO Tito Martins said he didn't think there was enough liquidity in the short term to allow it to happen on a grand scale, as up to 80% of Vale's customers switch to pricing iron ore on current quarter average and even shorter benchmarks such as monthly and pure spot-based pricing.
The executives pointed out the difficulties of hedging a range of different iron ore products around a set marker, which would ensure greater liquidity.
Vale produces many higher iron content products than the 62%-Fe fines concentrate grade used as a benchmark in the physical market Platts and others publish.
One market analyst said that current quarter pricing would encourage more participants into the paper trading market. He also pointed out that it is more difficult for steel mills and miners to issue letters of credit for trade based on a floating price until settlement at the end of each quarter. Another source agreed, and said he expected more paperwork as a result.
The analyst said as Vale is the largest and more conservative than BHP Billiton and Rio Tinto that make up the top three global suppliers, the pricing mechanism change with large steel mills would likely lead smaller players in the industry to follow.
That means the "whole iron ore pricing system is based on a uncertain/floating value," he said.
NEW SYSTEM ALLOWS Q1 UPSIDE
Vale executives admitted it would be hit by a 20% or so lower price based on the quarterly average to date for newly revised contracts. This switch is likely to result in well over $1 billion in lost revenue, based on expected shipment volume and prices to date.
Vale's Q4 prices under the old system should have stayed flat to Q3, based on analysis by Platts.
However, if prices rise in Q1 2012 by more than the $155.794/dmt CFR North China average generated by benchmark Platts IODEX prices between September to November that would be used under the old system, Vale is betting it can recoup at least part of the loss from customers making the switch. Platts assessed IODEX 62%-Fe at $141.25/dmt CFR North China on Thursday.
Jose Carlos Martins said the market may stay in the $140-150/dmt CFR North China range for the time being, but believes the price will move up in the future.
The analyst said that even after the loss by the structural price change, Vale still makes large profits compared to mills in China that are losing money or at just breakeven.
He forecast Vale's iron ore fines and pellet export volume at around 68 million mt in Q4.
For Rio Tinto, the world's No. 2 iron ore miner and largest supplier from Australia, it too has already moved more towards spot prices. A November 28 company presentation shows about a third of sales remaining on the previous quarter with one month lag pricing basis, with the rest a mix of current quarter, monthly-prior and monthly actual, and spot.
In October, Rio Tinto said 86% of sales in the third quarter were based on historic "quarterly lagged" prices.
Rio Tinto's iron ore sales in Q3 totaled 60 million mt on a 100% project basis, based on the group's operational review.
As for BHP Billiton, the miner has been the most aggressive in pushing for short-term spot-based pricing in iron ore, as well as coking coal and other commodities. While the miners captured a change in pricing helped by China's expanded appetite for imports, it has increased volatility as Japanese-led benchmark pricing now becomes the exception.
Source: Platts
Only time will tell if Vale's giant ore carriers will enter China
Tuesday, 13 December 2011
Brazilian iron ore miner Vale said it would take time for its new mega-ships to be able to enter Chinese ports but stood by its shipping strategy.Its multi-billion dollar plan to cut freight costs by ordering a fleet of 35 of the world's biggest iron-ore carriers as it aims to tap demand in China, the world's No. 1 importer of the raw material used to produce steel, has faced stiff opposition from Chinese shipping players.
"It was definitely not a mistake," Vale's executive director of iron ore and strategy, Jose Carlos Martins, told a news conference on Wednesday in due time. These safety measures, the drafting situations when asked whether he regretted building the mega-vessels before getting permission to berth at Chinese ports."I think it is a question of time, and these vessels will be very much used on this route from Brazil to Asia."
Martins would not speculate how long it will take. "I think things will happen in ports, all of these things have to be seen, to be developed, without being in a hurry. It takes time. You need to be patient," he said. China has yet to allow any of Vale's giant ships to dock at its ports, forcing the world's biggest iron-ore producer to send its vessels instead to Italy, Oman and other destinations. Martins said there was one ship owner, "who is not happy with our strategy".
He added, "The Chinese government never said anything against it. This is a port issue. We need to solve it with port authorities." In a further setback for the group, the damaged Vale Beijing, which is the world's largest iron ore carrier, was towed on Tuesday from its berth in Brazil for repairs, raising potential safety worries about the mega-ships. The ship, delivered in September to its owner and operator, South Korea's STX Pan Ocean, is longer and wider than three soccer fields. It was about to start its first fully loaded voyage, a planned run to Rotterdam.
"Vale Beijing belongs to STX. It is an STX project, so we are awaiting their appraisal. The other ships have nothing to do with this. They are the same size but they are different projects. They are different," Martins said."Now we are waiting ... I am not minimising this, it is very serious and we are really concerned. But we need to wait for the conclusions. Everything we say now is speculation."
Martins said he hoped the ship classification society would have "a good explanation" for the damaged vessel.
He added that he was confident about the seaworthiness of other mega-ships already in service.
"Vale Brasil is now on its fifth voyage, and we have Vale Rio de Janeiro, Vale Italia. All those ships are already berthing, loading without a problem," he said.
NEW IRON ORE PRICE ERA
Vale's iron ore pricing strategy was also going through changes.
A 31 percent plunge in spot iron ore prices .IO62-CNI=SI in October prompted Asian steel producers to scour for adjustments in pricing the steelmaking ingredient to more closely reflect spot rates.
China Steel, Taiwan's top steelmaker, said it had agreed on a 23 percent cut in iron ore prices for October-December with the Brazilian miner, but Martins said rather than a discount, this was due to a switch to a new pricing method.
"Until last quarter we were using a lagging quarterly price, but with the recent drop in price, we got a lot of pressure from customers to change it and to use the (current) quarter average," Martins said.
"So we are now basing the price on the current quarter average ... nearly 80 percent of our sales are now done this way."
Vale said looking at average spot prices so far this quarter, based on the new mechanism, contract prices should be about 20 percent lower than if they were based on the previous method.
Martins said a move towards even shorter pricing was inevitable, adding there were several initiatives in the industry to create a pricing platform.
Source: Reuters
Brazilian iron ore miner Vale said it would take time for its new mega-ships to be able to enter Chinese ports but stood by its shipping strategy.Its multi-billion dollar plan to cut freight costs by ordering a fleet of 35 of the world's biggest iron-ore carriers as it aims to tap demand in China, the world's No. 1 importer of the raw material used to produce steel, has faced stiff opposition from Chinese shipping players.
"It was definitely not a mistake," Vale's executive director of iron ore and strategy, Jose Carlos Martins, told a news conference on Wednesday in due time. These safety measures, the drafting situations when asked whether he regretted building the mega-vessels before getting permission to berth at Chinese ports."I think it is a question of time, and these vessels will be very much used on this route from Brazil to Asia."
Martins would not speculate how long it will take. "I think things will happen in ports, all of these things have to be seen, to be developed, without being in a hurry. It takes time. You need to be patient," he said. China has yet to allow any of Vale's giant ships to dock at its ports, forcing the world's biggest iron-ore producer to send its vessels instead to Italy, Oman and other destinations. Martins said there was one ship owner, "who is not happy with our strategy".
He added, "The Chinese government never said anything against it. This is a port issue. We need to solve it with port authorities." In a further setback for the group, the damaged Vale Beijing, which is the world's largest iron ore carrier, was towed on Tuesday from its berth in Brazil for repairs, raising potential safety worries about the mega-ships. The ship, delivered in September to its owner and operator, South Korea's STX Pan Ocean, is longer and wider than three soccer fields. It was about to start its first fully loaded voyage, a planned run to Rotterdam.
"Vale Beijing belongs to STX. It is an STX project, so we are awaiting their appraisal. The other ships have nothing to do with this. They are the same size but they are different projects. They are different," Martins said."Now we are waiting ... I am not minimising this, it is very serious and we are really concerned. But we need to wait for the conclusions. Everything we say now is speculation."
Martins said he hoped the ship classification society would have "a good explanation" for the damaged vessel.
He added that he was confident about the seaworthiness of other mega-ships already in service.
"Vale Brasil is now on its fifth voyage, and we have Vale Rio de Janeiro, Vale Italia. All those ships are already berthing, loading without a problem," he said.
NEW IRON ORE PRICE ERA
Vale's iron ore pricing strategy was also going through changes.
A 31 percent plunge in spot iron ore prices .IO62-CNI=SI in October prompted Asian steel producers to scour for adjustments in pricing the steelmaking ingredient to more closely reflect spot rates.
China Steel, Taiwan's top steelmaker, said it had agreed on a 23 percent cut in iron ore prices for October-December with the Brazilian miner, but Martins said rather than a discount, this was due to a switch to a new pricing method.
"Until last quarter we were using a lagging quarterly price, but with the recent drop in price, we got a lot of pressure from customers to change it and to use the (current) quarter average," Martins said.
"So we are now basing the price on the current quarter average ... nearly 80 percent of our sales are now done this way."
Vale said looking at average spot prices so far this quarter, based on the new mechanism, contract prices should be about 20 percent lower than if they were based on the previous method.
Martins said a move towards even shorter pricing was inevitable, adding there were several initiatives in the industry to create a pricing platform.
Source: Reuters
Friday, December 9, 2011
Take time for mega ships to enter China - Vale
Friday, 09 Dec 2011
Brazilian iron ore miner Vale said it would take time for its new mega ships to be able to enter Chinese ports but stood by its shipping strategy.
Its multi billion dollar plan to cut freight costs by ordering a fleet of 35 of the world's biggest iron ore carriers as it aims to tap demand in China, the world's No 1 importer of the raw material used to produce steel, has faced stiff opposition from Chinese shipping players.
Mr Jose Carlos Martins Vale's executive director of iron ore and strategy told a news conference that "It was definitely not a mistake.”
These safety measures, the drafting situations when asked whether he regretted building the mega vessels before getting permission to berth at Chinese ports.
Mr Martins said that "I think it is a question of time, and these vessels will be very much used on this route from Brazil to Asia." Mr Martins would not speculate how long it will take.
He added that "I think things will happen in ports, all of these things have to be seen, to be developed, without being in a hurry. It takes time. You need to be patient.”
China has yet to allow any of Vale's giant ships to dock at its ports, forcing the world's biggest iron-ore producer to send its vessels instead to Italy, Oman and other destinations.
(Sourced from Reuters)
Brazilian iron ore miner Vale said it would take time for its new mega ships to be able to enter Chinese ports but stood by its shipping strategy.
Its multi billion dollar plan to cut freight costs by ordering a fleet of 35 of the world's biggest iron ore carriers as it aims to tap demand in China, the world's No 1 importer of the raw material used to produce steel, has faced stiff opposition from Chinese shipping players.
Mr Jose Carlos Martins Vale's executive director of iron ore and strategy told a news conference that "It was definitely not a mistake.”
These safety measures, the drafting situations when asked whether he regretted building the mega vessels before getting permission to berth at Chinese ports.
Mr Martins said that "I think it is a question of time, and these vessels will be very much used on this route from Brazil to Asia." Mr Martins would not speculate how long it will take.
He added that "I think things will happen in ports, all of these things have to be seen, to be developed, without being in a hurry. It takes time. You need to be patient.”
China has yet to allow any of Vale's giant ships to dock at its ports, forcing the world's biggest iron-ore producer to send its vessels instead to Italy, Oman and other destinations.
(Sourced from Reuters)
Thursday, November 17, 2011
Falling European steel production affecting iron ore volumes from Brazil
Thursday, 17 November 2011
Europe’s current economic woes are weighing heavily on the steel industry. Tata Steel is closing a facility in Wales, while ArcelorMittal has idled and closed a number of European mills and furnaces. ArcelorMittal’s chief financial officer says that it is aiming for a global production capacity of around 71% in Q4, and that they are seeing “more drops in shipments in Europe than in North America.” The impact of lower steel output in Europe is already being felt in the seaborne market. Brazil exported 4.7 MT of iron ore to Europe last month, a 12.2% year-on-year decline. In the years before the 2008 recession, around 30% of Brazil’s iron ore exports went to Europe. After plummeting in 2009, demand recovered enough last year to bring Europe’s share back up to around 20%. Based on the current slowdown in European import demand, however, it is possible that both the volume and share of Europe’s iron ore imports from Brazil will be lower than in 2010.
Source: ICAP Shipping
Europe’s current economic woes are weighing heavily on the steel industry. Tata Steel is closing a facility in Wales, while ArcelorMittal has idled and closed a number of European mills and furnaces. ArcelorMittal’s chief financial officer says that it is aiming for a global production capacity of around 71% in Q4, and that they are seeing “more drops in shipments in Europe than in North America.” The impact of lower steel output in Europe is already being felt in the seaborne market. Brazil exported 4.7 MT of iron ore to Europe last month, a 12.2% year-on-year decline. In the years before the 2008 recession, around 30% of Brazil’s iron ore exports went to Europe. After plummeting in 2009, demand recovered enough last year to bring Europe’s share back up to around 20%. Based on the current slowdown in European import demand, however, it is possible that both the volume and share of Europe’s iron ore imports from Brazil will be lower than in 2010.
Source: ICAP Shipping
Sunday, October 30, 2011
Vale to compete on iron ore spot market
Sunday, 30Oct,2011
Dow Jones reported that Brazilian mining company Vale SA prepared to compete on the iron ore spot market rather than sell ore on contracts if that's what clients want.
Mr Jose Carlos Martins Vale executive strategies director said however we can't work with a system whereby if iron ore prices fall they want spot prices and if they go up they want fixed contract prices.
He said that "We've got no dogma at Vale on this. We're not high cost producers. We're prepared to compete at spot market prices."
Mr Martins said spot market prices plunged mainly due to credit restrictions in China which are making it more difficult for steelmakers and traders to purchase iron ore supplies.
He said that “Vale is negotiating on an individual basis with its clients to ascertain what kind of pricing system they prefer following recent market turbulence. The Chinese steelmakers are quite aggressively showing their preference for a system nearer the spot price while the Europeans and Japanese tend to prefer contracts which may give greater stability.”
He added that "Our tendency is to accompany market movements. We're going to accept what our customers decide."
Mr Martins said "The Chinese prefer a price nearer the market situation. The market is trending more to spot market prices in what is an almost irreversible move and a return to the annual benchmark system is now completely out of the question."
He said that however Vale isn't prepared to give discounts to customers if they change to a spot-price basis. He said that "It's not a free ride, if customers want spot prices and they must guarantee they will take the volumes already agreed."
He added that "Quarterly contracts are meanwhile bearable for both sides."
Iron ore producers and steelmaking customers worldwide agreed to adopt a quarterly contract pricing system for iron ore in April 2010 after the 40 year old annual benchmark pricing system fell apart during the global economic crisis due to Chinese pressure for cheaper prices near spot market prices.
Sourced from Dow Jones
Dow Jones reported that Brazilian mining company Vale SA prepared to compete on the iron ore spot market rather than sell ore on contracts if that's what clients want.
Mr Jose Carlos Martins Vale executive strategies director said however we can't work with a system whereby if iron ore prices fall they want spot prices and if they go up they want fixed contract prices.
He said that "We've got no dogma at Vale on this. We're not high cost producers. We're prepared to compete at spot market prices."
Mr Martins said spot market prices plunged mainly due to credit restrictions in China which are making it more difficult for steelmakers and traders to purchase iron ore supplies.
He said that “Vale is negotiating on an individual basis with its clients to ascertain what kind of pricing system they prefer following recent market turbulence. The Chinese steelmakers are quite aggressively showing their preference for a system nearer the spot price while the Europeans and Japanese tend to prefer contracts which may give greater stability.”
He added that "Our tendency is to accompany market movements. We're going to accept what our customers decide."
Mr Martins said "The Chinese prefer a price nearer the market situation. The market is trending more to spot market prices in what is an almost irreversible move and a return to the annual benchmark system is now completely out of the question."
He said that however Vale isn't prepared to give discounts to customers if they change to a spot-price basis. He said that "It's not a free ride, if customers want spot prices and they must guarantee they will take the volumes already agreed."
He added that "Quarterly contracts are meanwhile bearable for both sides."
Iron ore producers and steelmaking customers worldwide agreed to adopt a quarterly contract pricing system for iron ore in April 2010 after the 40 year old annual benchmark pricing system fell apart during the global economic crisis due to Chinese pressure for cheaper prices near spot market prices.
Sourced from Dow Jones
Saturday, October 29, 2011
Vale appoints new coal boss
Saturday, 29 Oct 2011
Brazilian mining giant Vale has appointed a new boss for its coal division to be based in Brisbane.
Mr Mauro Neves replaces fellow Brazilian national Mr Decio Amaral whose resignation was suddenly announced in August after nearly two years in the job.
Mr Amaral spoke of a desire to make Vale one of the four largest coal players in Australia through the 10,000 square kilometres of coal tenements it owns in Queensland's Galilee and Bowen basins.
He has quit Vale and is moving back to Brazil.
Mr Neves was Vale's director of planning, development and continuous improvement and will move to Australia from Brazil.
Vale said in a statement that he came to the role with a mandate to oversee the growth of Vale global coal business and existing operations in Australia, Mozambique and Colombia.
The company wants to be Australia's fourth-biggest coal producer by 2021.
(sourced smh.com.au)
If you believe an article violates your rights or the rights of others, please contact us.
Brazilian mining giant Vale has appointed a new boss for its coal division to be based in Brisbane.
Mr Mauro Neves replaces fellow Brazilian national Mr Decio Amaral whose resignation was suddenly announced in August after nearly two years in the job.
Mr Amaral spoke of a desire to make Vale one of the four largest coal players in Australia through the 10,000 square kilometres of coal tenements it owns in Queensland's Galilee and Bowen basins.
He has quit Vale and is moving back to Brazil.
Mr Neves was Vale's director of planning, development and continuous improvement and will move to Australia from Brazil.
Vale said in a statement that he came to the role with a mandate to oversee the growth of Vale global coal business and existing operations in Australia, Mozambique and Colombia.
The company wants to be Australia's fourth-biggest coal producer by 2021.
(sourced smh.com.au)
If you believe an article violates your rights or the rights of others, please contact us.
Vale to compete on iron ore spot market
Saturday, 29 Oct 2011
Dow Jones reported that Brazilian mining company Vale SA prepared to compete on the iron ore spot market rather than sell ore on contracts if that's what clients want.
Mr Jose Carlos Martins Vale executive strategies director said however we can't work with a system whereby if iron ore prices fall they want spot prices and if they go up they want fixed contract prices.
He said that "We've got no dogma at Vale on this. We're not high cost producers. We're prepared to compete at spot market prices."
Mr Martins said spot market prices plunged mainly due to credit restrictions in China which are making it more difficult for steelmakers and traders to purchase iron ore supplies.
He said that “Vale is negotiating on an individual basis with its clients to ascertain what kind of pricing system they prefer following recent market turbulence. The Chinese steelmakers are quite aggressively showing their preference for a system nearer the spot price while the Europeans and Japanese tend to prefer contracts which may give greater stability.”
He added that "Our tendency is to accompany market movements. We're going to accept what our customers decide."
Mr Martins said "The Chinese prefer a price nearer the market situation. The market is trending more to spot market prices in what is an almost irreversible move and a return to the annual benchmark system is now completely out of the question."
He said that however Vale isn't prepared to give discounts to customers if they change to a spot-price basis. He said that "It's not a free ride, if customers want spot prices and they must guarantee they will take the volumes already agreed."
He added that "Quarterly contracts are meanwhile bearable for both sides."
Iron ore producers and steelmaking customers worldwide agreed to adopt a quarterly contract pricing system for iron ore in April 2010 after the 40 year old annual benchmark pricing system fell apart during the global economic crisis due to Chinese pressure for cheaper prices near spot market prices.
Sourced from Dow Jones
Dow Jones reported that Brazilian mining company Vale SA prepared to compete on the iron ore spot market rather than sell ore on contracts if that's what clients want.
Mr Jose Carlos Martins Vale executive strategies director said however we can't work with a system whereby if iron ore prices fall they want spot prices and if they go up they want fixed contract prices.
He said that "We've got no dogma at Vale on this. We're not high cost producers. We're prepared to compete at spot market prices."
Mr Martins said spot market prices plunged mainly due to credit restrictions in China which are making it more difficult for steelmakers and traders to purchase iron ore supplies.
He said that “Vale is negotiating on an individual basis with its clients to ascertain what kind of pricing system they prefer following recent market turbulence. The Chinese steelmakers are quite aggressively showing their preference for a system nearer the spot price while the Europeans and Japanese tend to prefer contracts which may give greater stability.”
He added that "Our tendency is to accompany market movements. We're going to accept what our customers decide."
Mr Martins said "The Chinese prefer a price nearer the market situation. The market is trending more to spot market prices in what is an almost irreversible move and a return to the annual benchmark system is now completely out of the question."
He said that however Vale isn't prepared to give discounts to customers if they change to a spot-price basis. He said that "It's not a free ride, if customers want spot prices and they must guarantee they will take the volumes already agreed."
He added that "Quarterly contracts are meanwhile bearable for both sides."
Iron ore producers and steelmaking customers worldwide agreed to adopt a quarterly contract pricing system for iron ore in April 2010 after the 40 year old annual benchmark pricing system fell apart during the global economic crisis due to Chinese pressure for cheaper prices near spot market prices.
Sourced from Dow Jones
Thursday, October 27, 2011
Brazil Vale in client talks to alter pricing model
Thu Oct 27, 2011
RIO DE JANEIRO Oct 27 (Reuters) - Giant Brazilian miner Vale said on Thursday it is in negotiations with its clients to change the pricing mechanism for its iron ore shipments.
Executive director Jose Carlos Martins said most clients in China are interested in moving toward a spot market model for pricing ore, and he expects increased volatility in prices of late to only support that trend in the future.
(sourced Reuters)
RIO DE JANEIRO Oct 27 (Reuters) - Giant Brazilian miner Vale said on Thursday it is in negotiations with its clients to change the pricing mechanism for its iron ore shipments.
Executive director Jose Carlos Martins said most clients in China are interested in moving toward a spot market model for pricing ore, and he expects increased volatility in prices of late to only support that trend in the future.
(sourced Reuters)
Monday, October 17, 2011
Vale may tweak iron contracts as prices fall: source
Mon Oct 17, 2011
* Vale seeks to bring quarterly price closer to spot
* Iron ore prices weakening as demand softens
RIO DE JANEIRO Oct 17 (Reuters) - Brazilian mining giant Vale could alter iron ore contracts to make quarterly prices more closely match spot prices, a market source told Reuters, as a weakening global economy cuts into demand for the steel-making ingredient.
The quarterly iron contracts are based on the average of spot prices over a three-month period ending a month before the start of each quarter.
Vale could change a clause which says the contract price will remain the same from one quarter to the next unless the change in the spot price average is greater than 5 percent -- a clause that hurts buyers in times of falling prices.
"I spoke with Vale in recent weeks and they said they could review that clause," said the source, who asked not to be identified. A Vale spokeswoman said the company had no comment on the issue.
Without this provision, iron ore prices for the fourth quarter contracts would be 1 to 2 percent lower.
The fourth quarter price of $175 per tonne is now considerably above the spot price , which on Monday was close to a 12-month low at $153.40.
Sources at steel mills in top iron importer China last week said ore miners including Vale have given mills the option to buy the raw material at prices below the fourth-quarter price following the tumble in spot rates.
When spot market rates are below contract rates, steel mills and traders move toward the spot market and begin pressuring iron miners to lower the contract price.
A similar situation caused the demise of the benchmark pricing system, which was based on annual negotiations between miners and steel mills. Chinese buyers in 2008 and 2009 abandoned benchmark contracts to buy cheaper spot ore, then returned to benchmark contracts when spot prices rose again.
That led the miners to scrap the benchmark system and create a quarterly mechanism based on spot-price averages.
BHP Billiton , the world's No. 3 iron ore miner, is calling for a global trading platform for spot prices and the use of derivatives to bring greater transparency to the iron ore market. It is backing the creation of an electronic trading platform for iron, which it hopes will be launched at the end of 2011 or in early 2012.
(sourced Reuters)
* Vale seeks to bring quarterly price closer to spot
* Iron ore prices weakening as demand softens
RIO DE JANEIRO Oct 17 (Reuters) - Brazilian mining giant Vale could alter iron ore contracts to make quarterly prices more closely match spot prices, a market source told Reuters, as a weakening global economy cuts into demand for the steel-making ingredient.
The quarterly iron contracts are based on the average of spot prices over a three-month period ending a month before the start of each quarter.
Vale could change a clause which says the contract price will remain the same from one quarter to the next unless the change in the spot price average is greater than 5 percent -- a clause that hurts buyers in times of falling prices.
"I spoke with Vale in recent weeks and they said they could review that clause," said the source, who asked not to be identified. A Vale spokeswoman said the company had no comment on the issue.
Without this provision, iron ore prices for the fourth quarter contracts would be 1 to 2 percent lower.
The fourth quarter price of $175 per tonne is now considerably above the spot price , which on Monday was close to a 12-month low at $153.40.
Sources at steel mills in top iron importer China last week said ore miners including Vale have given mills the option to buy the raw material at prices below the fourth-quarter price following the tumble in spot rates.
When spot market rates are below contract rates, steel mills and traders move toward the spot market and begin pressuring iron miners to lower the contract price.
A similar situation caused the demise of the benchmark pricing system, which was based on annual negotiations between miners and steel mills. Chinese buyers in 2008 and 2009 abandoned benchmark contracts to buy cheaper spot ore, then returned to benchmark contracts when spot prices rose again.
That led the miners to scrap the benchmark system and create a quarterly mechanism based on spot-price averages.
BHP Billiton , the world's No. 3 iron ore miner, is calling for a global trading platform for spot prices and the use of derivatives to bring greater transparency to the iron ore market. It is backing the creation of an electronic trading platform for iron, which it hopes will be launched at the end of 2011 or in early 2012.
(sourced Reuters)
Sunday, September 11, 2011
POSCO to raise stake in Brazilian iron ore miner
September11, 2011
Korean newspaper the Korea Economic Daily reported Friday that South Korean steel giant POSCO plans to buy additional shares of Brazilian iron ore mining company Namisa following recent board approval.
According to the report, POSCO will buy an additional 2 to 3 percent in Namisa from fellow shareholders.
POSCO originally bought a 6.5 percent stake in Namisa for $505 million in 2008, when a group of six Asian steelmaking companies bought respective stakes in Namisa. Other shareholders in the iron ore miner include Japan's Nippon Steel Corp., Kobe Steel Ltd., JFE Steel Corporation, Sumitomo Metal Industries and Nisshin Steel Co. Combined with POSCO, the six steelmakers own a 40 percent stake in Namisa.
Tags: iron ore , raw mat , Brazil , Japan , Korea , Korea S. , Far East , South America , investments , M&A , POSCO , mining , JFE Steel , Nippon Steel , Kobe Steel , East Asia and Pacific
(sourced steelorbis)
Korean newspaper the Korea Economic Daily reported Friday that South Korean steel giant POSCO plans to buy additional shares of Brazilian iron ore mining company Namisa following recent board approval.
According to the report, POSCO will buy an additional 2 to 3 percent in Namisa from fellow shareholders.
POSCO originally bought a 6.5 percent stake in Namisa for $505 million in 2008, when a group of six Asian steelmaking companies bought respective stakes in Namisa. Other shareholders in the iron ore miner include Japan's Nippon Steel Corp., Kobe Steel Ltd., JFE Steel Corporation, Sumitomo Metal Industries and Nisshin Steel Co. Combined with POSCO, the six steelmakers own a 40 percent stake in Namisa.
Tags: iron ore , raw mat , Brazil , Japan , Korea , Korea S. , Far East , South America , investments , M&A , POSCO , mining , JFE Steel , Nippon Steel , Kobe Steel , East Asia and Pacific
(sourced steelorbis)
Wednesday, September 7, 2011
Vale open to sell or lease its large iron ore vessels - Report
Wednesday, 07 Sep 2011
Dow Jones reported that Brazilian iron ore miner Vale SA is open to selling or leasing on a long term basis the ownership of its very large ore carriers as it doesn't intend to be a major freight operator.
Vale currently has 34 vessels under constructions, 16 of which are being built by international shipowners and will be operated exclusively for the company under long term contracts.
The remaining 18 ships, which are being built in South Korean and Chinese shipyards, may be transferred or leased to international shipowners, including the Chinese.
A Rio de Janeiro based press officer for Vale said that "Our goal is to encourage the construction of vessels which are more efficient, with higher standards of operational safety, environmentally friendly these vessels allow for a reduction of 35% in carbon emissions per transported tonne and contribute to reduce the freight volatility in the market."
(sourced from Dow Jones Newswires)
Dow Jones reported that Brazilian iron ore miner Vale SA is open to selling or leasing on a long term basis the ownership of its very large ore carriers as it doesn't intend to be a major freight operator.
Vale currently has 34 vessels under constructions, 16 of which are being built by international shipowners and will be operated exclusively for the company under long term contracts.
The remaining 18 ships, which are being built in South Korean and Chinese shipyards, may be transferred or leased to international shipowners, including the Chinese.
A Rio de Janeiro based press officer for Vale said that "Our goal is to encourage the construction of vessels which are more efficient, with higher standards of operational safety, environmentally friendly these vessels allow for a reduction of 35% in carbon emissions per transported tonne and contribute to reduce the freight volatility in the market."
(sourced from Dow Jones Newswires)
Tuesday, September 6, 2011
China COSCO not in formal talks with Vale over mega bulk ship sale-official
Tue Sep 6, 2011
SINGAPORE, Sept 6 (Reuters) - China's COSCO Group, the country's top shipping conglomerate, was not holding talks with Vale over the sale of the Brazilian miner's mega dry bulk carriers, a COSCO official told Reuters on Tuesday.
"I never heard about this. I don't think the COSCO head office has had any official talks with Vale in the form of meetings or teleconference as far as I know," said the COSCO official, who wished not to be named because he is not authorized to speak to the media on the subject.
A Vale official told Reuters on Monday the mining giant was in talks with Chinese and other shipowners to sell or lease its planned fleet of giant bulk carriers.
COSCO Chairman Wei Jiafu told Reuters last November that it was not interested when initially approached by Vale to be a partner in the project.
SINGAPORE, Sept 6 (Reuters) - China's COSCO Group, the country's top shipping conglomerate, was not holding talks with Vale over the sale of the Brazilian miner's mega dry bulk carriers, a COSCO official told Reuters on Tuesday.
"I never heard about this. I don't think the COSCO head office has had any official talks with Vale in the form of meetings or teleconference as far as I know," said the COSCO official, who wished not to be named because he is not authorized to speak to the media on the subject.
A Vale official told Reuters on Monday the mining giant was in talks with Chinese and other shipowners to sell or lease its planned fleet of giant bulk carriers.
COSCO Chairman Wei Jiafu told Reuters last November that it was not interested when initially approached by Vale to be a partner in the project.
Saturday, August 27, 2011
Vale to recover iron ore waste in Brazil
August27, 2011
Brazilian newspaper Folha de San Paulo reported Thursday that Brazilian miner Vale plans to process 80 million tons of iron ore waste from tailings dams in the Minas Gerais state in Brazil. At that current international iron ore price of US$147.30/metric ton, Vale could earn as much as US$4.5 billion from the project.
According the report, the iron ore waste has an average grade of 35 percent Fe, but will rise to 62 percent Fe after processing. Once processed, it can be sold as iron ore dust or converted into iron ore pellets used in blast furnaces for steelmaking.
The project is slated to begin in 2013.
(sourced steelorbis)
Brazilian newspaper Folha de San Paulo reported Thursday that Brazilian miner Vale plans to process 80 million tons of iron ore waste from tailings dams in the Minas Gerais state in Brazil. At that current international iron ore price of US$147.30/metric ton, Vale could earn as much as US$4.5 billion from the project.
According the report, the iron ore waste has an average grade of 35 percent Fe, but will rise to 62 percent Fe after processing. Once processed, it can be sold as iron ore dust or converted into iron ore pellets used in blast furnaces for steelmaking.
The project is slated to begin in 2013.
(sourced steelorbis)
Monday, August 22, 2011
ENRC raise costs and timeline for Brazil BML iron ore project
Monday, 22 Aug 2011
Dow Jones reported that Eurasian Natural Resources Corp has increased the costs and timeline for developing and commissioning its BML iron ore project in Brazil.
The report quoted Mr Felix Vulis CEO of ENRC as saying that it now expects the 19.5 million tonne a year BML project to cost USD 2.3 billion to develop, up from a previous estimate of USD 2.1 billion, largely due to the appreciation of the Brazilian real.
He said that "The whole cost is approximately 2.3 billion. We do not anticipate any moves in that number because the model has been updated to take into consideration further appreciation in the real against the dollar.”
The project has also been delayed by about year, due to the relocation of the port and is now forecast to start commissioning at the end of 2014.
Mr Vulis said the company expects the license for the port, which had to be relocated, will be awarded in the first half of 2012.
(Sourced from Dow Jones Newswires)
Dow Jones reported that Eurasian Natural Resources Corp has increased the costs and timeline for developing and commissioning its BML iron ore project in Brazil.
The report quoted Mr Felix Vulis CEO of ENRC as saying that it now expects the 19.5 million tonne a year BML project to cost USD 2.3 billion to develop, up from a previous estimate of USD 2.1 billion, largely due to the appreciation of the Brazilian real.
He said that "The whole cost is approximately 2.3 billion. We do not anticipate any moves in that number because the model has been updated to take into consideration further appreciation in the real against the dollar.”
The project has also been delayed by about year, due to the relocation of the port and is now forecast to start commissioning at the end of 2014.
Mr Vulis said the company expects the license for the port, which had to be relocated, will be awarded in the first half of 2012.
(Sourced from Dow Jones Newswires)
Sunday, February 27, 2011
Middle East crisis wont have major impact on its business - Vale
Sunday, 27 Feb 2011
Dow Jones reported that Brazilian mining company Vale SA said that its business won't be greatly affected by the current political and social crisis in parts of the Middle East.
Mr Jose Carlos Martins executive director at Vale said that "Only 3% of our sales are to the Middle East. Vale notched up operating revenues of USD 46.5 billion in 2010."
Mr Martins said that a major Egyptian client continues to produce normally, although operations at a major Libyan client are at a standstill.
Vale earlier this month started up a new 9 million tonnes a year iron ore palletizing operation in Oman to supply Middle Eastern steelmakers with pellets, a semi processed and value added iron ore product. (sourced: Dowjones)
Mr Jose Carlos Martins executive director at Vale said that "Only 3% of our sales are to the Middle East. Vale notched up operating revenues of USD 46.5 billion in 2010."
Mr Martins said that a major Egyptian client continues to produce normally, although operations at a major Libyan client are at a standstill.
Vale earlier this month started up a new 9 million tonnes a year iron ore palletizing operation in Oman to supply Middle Eastern steelmakers with pellets, a semi processed and value added iron ore product. (sourced: Dowjones)
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