BRASILIA (Scrap Monster): Murilo Ferreira, the Chief executive Officer of Vale S.A, a Brazilian based international multinational mining corporation, the price of iron ore, which has declined about 49 percent and reached at a value of 68.70 dollars per dry metric tonne, might return again to its average range of 75-80 dollars per dry metric tonne.
Even as the price of iron ore is declining at a fast rate, the company is not even considering the matter regarding slowing down its expansions at its iron ore mines. The company has already decided to expand its operations at Vale’s 19.8 billion dollars worth Serra Sul S11D mine, and also one of the company’s number one priority, the logistics project.
The CEO of Vale S.A, commented that, the condition of the iron ore market at the present is underrated, and the price of iron in this year has been unstable most of the time, but things are expected to be changed. The correction of the iron ore prices, according to Ferreira, would come from the closure of high cost miners who supply low quality iron ore to the global iron ore market.
The trio giants; Vale, BHP Billitonand Rio Tinto, are hiking their expansion, in the hope of squeezing out the high cost iron ore miners from the iron ore market. The decline in the price of iron ore, most importantly, the 22 percent decline in the commodity which was taken into notice for the last two months, has encouraged many inefficient Chinese high cost miners to close down their mines. Cliff Natural Resources, an Ohio based mining firm are planning on to close down the company’s iron ore mine in Canada