DJ Brazil's Iron Ore Market Share Has Shrunk On Project License Snags - Vale
Aug 01, 2012 (Dow Jones Commodities News Select via Comtex) --RIO DE JANEIRO - Brazil has seen its share of the global seaborne iron ore market shrink over the last decade mainly due to licensing difficulties which have caused mine project delays, an executive of Brazilian mining company Vale SA (VALE5.BR, VALE) said Wednesday.
Brazil's share of the seaborne market for the steelmaking raw material fell to 30% in 2011 from 35% in 2000, while competitor Australia's share increased, said Vale's integrated planning and technological development director Stephen Potter at the Brazilian Metallurgy and Materials Association annual congress in Rio de Janeiro.
Brazil has lost revenues of about 20 billion since 2000 due to the iron ore project delays, according to Mr. Potter. Vale is the world's largest iron ore producing company, with output of more than 300 million metric tons a year of the steelmaking ingredient.
However, the company needs to gain no fewer than 174 environmental permits to complete projects for which 34 billion in investments have already been approved for the coming years to meet targets and demand, Mr. Potter said.
Vale is attempting to improve its mine operations to minimize environmental impact and facilitate permitting, Mr. Potter said.
Vale's new mammoth 90 million tons-a-year Serra Sul iron ore project in the Amazon, which will virtually double iron ore output from Brazil's Carajas high-grade mineral province, will use conveyor belts instead of trucks to move ore to minimize environmental impact, Mr. Potter said.
Vale gained a preliminary licence in June to complete studies on Serra Sul.
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