The Rising Influence of Rising Affluence

[DewDiligence]

Vale Restarts Agua Limpa Mine

[The global demand for iron ore is recovering, evidently. Earlier this week, CLF increased workers’ hours at one its iron mines by 20%.]

http://www.reuters.com/article/marketsNews/idAFN0312782920090903

›Thu Sep 3, 2009 6:13pm EDT

RIO DE JANEIRO, Sept 3 (Reuters) - Brazilian miner Vale, the world's largest iron ore miner, on Thursday said it has restarted its Agua Limpa iron operation, which it shuttered earlier this year as the financial crisis cut into demand.

Vale (VALE) said the facility would produce at an annual rate of 5.4 million tonnes by the end of the year, 17 percent above its 4.6 million tonne annual rate in December, when it began scaling back operations.

The company has benefited from rising spot iron ore prices in recent months on growing demand in China and diplomatic frictions between Beijing and Canberra over the detention of executives from Australia's Rio Tinto.

China steel industry officials continue negotiating the annual benchmark pricing of iron ore even after the June 30 deadline as Chinese officials struggle to win greater price cuts from 2008 benchmark levels than other Asian clients.

A Vale executive in an interview with Reuters said the company prefers to maintain the benchmark system even as Australian rivals push for the increasing use of a growing spot market.‹