20/09/07

Worldwide iron ore demand is expected to remain “accelerated” until at least 2015, Paulo Camillo Penna, president of Brazilian mining institute Ibram, told BNamericas. “From that date we don`t know what could occur,” Penna said. Brazil`s mining industry is due to receive investments of US$28bn in the 2007-11 period, according to Ibram estimates. “Iron ore investments during that period are expected to reach US$9.60bn,” said Penna. China is one of the reasons behind the increasing demand for the raw steelmaking material, “but many forget about India, and [demand from] Germany and the US have also been growing,” said the Ibram executive, adding the need for iron ore on the Brazilian market is also on the rise. Domestic iron ore production reached 122Mt in the first half of 2007, up 6% from the same period last year, according to the mining institute. Brazil is home to iron ore mines operated by Rio de Janeiro-based CVRD (NYSE: RIO), the world`s largest producer, integrated steelmaker CSN (NYSE: SID), and mining and metals company MMX, among others.

BN Americas