Brazil to Sell 11.3 Million Tons of Ore to China

    Brazilian mining company, Vale do Rio Doce, announced a new contract with the Shougang Group, one of the largest steel manufacturers in China. The contract foresees the delivery of 11.3 million tons of ore until 2012 and was signed yesterday (14) in Rio de Janeiro, according to information published in newspaper Gazeta Mercantil.


    Vale do Rio Doce already held a contract with the Shougang Group for the sales of 4.4 million tons of ore, for the years between 2004 and 2008. The Brazilian company also recently signed contracts with two other Chinese groups, Baosteel and China Steel. At present, China imports one third of the world’s ore production.


    Companhia Vale do Rio Doce (CVRD), the Brazilian company mining giant and largest iron ore exporter in the world, posted record sales, export, and profit in the second quarter of this year.


    Company net profit totalled US$ 504 million, 10.5% more than that registered in the second half of 2003 (US$ 456 million), and 24.4% greater than that registered in the first three months of the year (US$ 405 million).


    Company gross revenues, in turn, totalled US$ 2.033 billion. There was a 66.8% increase in contrast to the second quarter in 2003, and 17.4% with regard to the first three months of 2004. Export in turn totalled US$ 1.524 billion, 60.9% more than in the same period last year. The main destinations were Europe, in the first place, followed by China, Japan, and the rest of Asia.


    The trade of ferrous minerals (iron ore, pellets, manganese, and iron alloys) answered to most of the revenues, US$ 1.426 billion, being US$ 943 million from iron ore sales.


    The volume exported in the second half reached 55.816 million tons of iron ore, a 34.5% growth with regard to the same period in 2003, and 5.4% in comparison to the first quarter this year. Ore production was 51.516 million tons, 10.7% more than in the previous quarter.


    The company attributed this performance to growth in the sales volume and in traded product prices. CVRD stated that there is “strong global demand” for iron ore.


    But Vale does not live exclusively off ferrous ores. The company also explores kaolin, potassium, and copper, operates in logistics and electric energy production, and in the production of aluminium.


    Highlights


    The beginning of copper production at Sossego mine, in the northern state of Pará, in June, was pointed out as one of the company highlights for the period. Product export has already generated the company around US$ 24 million.


    According to information supplied by Vale, the mine has “proven and probable” reserves of 244.7 million tons of copper ore, with an estimated grade of 1% copper as well as approximately 0.26 grams of gold per ton as a by-product.


    For exploration of the metal, Vale built a mill with the capacity for production of 467,000 tons of copper concentrate per year, equivalent to 140,000 tons of copper. Investment in installation of Sossego mine has been US$ 413 million since it was discovered six years ago.


    With regard to investment in general, Vale invested a total of US$ 488.3 million in its operation in the second quarter of 2004, and US$ 846.3 million in the accumulated result for the first half.


    Another fact that deserves highlighting in the second quarter, according to the company, was the creation of a joint venture with Chinese companies for the production of alumina, metallurgical coke, and coke. The contracts were signed when Brazilian President Luiz Inácio Lula da Silva was visiting China, in May.


    Vale already has joint ventures with companies in other countries around the world, including Bahrein, where the company has 50% of the capital of an iron pellet factory, in association with Gulf Investment Corporation (GIC), from Kuwait.


    Other highlights, according to the company, were two new long-term iron ore sales contracts signed in the second quarter. One of them, with company Cosipa, from the Brazilians southeastern state of São Paulo, forecasts the supply of 1.1 million tons a year for three years, and the other, with Japanese Nippon Steel Corporation, the largest ironworks in Japan, consists of the shipping of 70 million tonnes of iron ore for 10 years, starting in 2005.


    Apart from that, the company also pointed out the sale of its 28.02% participation in ironworks Companhia Siderúrgica de Tubarão, a US$ 578,5 million deal.


    ANBA ”“ Brazil-Arab News Agency

    Tags:

    • Show Comments (3)

    • chandrashekhar

      Manganese Ore
      Dear sirs,
      We are looking for an assured source of Manganese Ore having grade 45% and above.
      If any body having capacity please submit offer with delivery period. We shall be procuring the material thru our Dubai office.
      Chandrashekhar
      91 98509 57079.
      91 20 24535001/2/3/4/5/6/7.

    • Guest

      IRON ORE
      DEAR Rabih Barudi

      SUB: SUBMISSION OF REQUISITION FOR SUPPLY OF

      IRON ORE

      I WRISH TO SUBMIT THE FOLLOWING FEW LINES FOR YOU

      R KIND CONSIDERATION AND FAVORABLE RESPONSE PLEASE SIR I AM GLAD TO INFORM YOU THAT WE SUPPLY INDIAN IRON ORE 63.5%,WHICH HAS EASNED GOOD REPUTATION AND RESPONSE FROM THE MARKET AND THE COMPANIES TO WHICH WE HAVE SUPPLIED TILL DATE

      SO WE WATING FOR YOU KIND AND POSITIVI RESPONSE

      SSOUTHSERVICE TRADING COMPANY

      ADD- HASAMABAD HYDERABAD A.P (INDIA)

      SSOUTHSERVICE@YAHOO.CO.IN

      TEL: 0091-9247104200

      0091-9391165646

      FAX: 0091-40-24579256

      THAKING YOU

      Yours, sincerely

      Zubair Siddiqui

    • Guest

      buying Sugar
      11-8-2005

      Dear Sir

      We are searching for Buying Sugar 12.500 Mt Monthly to Tripoli Seaport

      Specification Refined Cane Sugar

      Ioumsa 45 RBU
      Polmiation 99.80 % Min
      Ash Contem 0.04 % Max
      Solubility 100% Dry & Free Flowing
      Radiation Normal ”“ Certified
      Color Sparkling White
      Gradation Fine
      Crop 2004 / Current

      Total Quantity 100.000 Mt
      Monthly 12.500 Mt
      With Bags / 50 Kg

      Please send to us you’re Prices, Commission, and about PB 5%

      If you can accept our Offer we will do good business in Future

      Please advices us about our offer ASAP.

      You can contact me on my email
      rbarudi@hotmail.com

      Best Regards

      Tripoli – Libya
      Tel: +218 21 360 9658
      Fax: +218 21 361 1787
      Mobile : +218 92 509 3110
      Email : rbarudi@hotmail.com

      Rabih Barudi
      Consult business in Libya

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Gaza being bombarded

    Brazilian President Accuses Israel of Carrying Out a Massacre in Gaza

    Brazilian president Dilma Rousseff hits Israel hard calling the country responsible for carrying out ...

    Brazil and Neighbors Get UN Money to Monitor Birds Flying South

    The United Nations’ Food and Agriculture Organization (FAO) signed a US$ 500,000 agreement with ...

    Itaipu

    In Response to Paraguay’s Outcry Over Itaipu Brazil Offers US$ 1 Bi Loan

    Brazil is planning to offer a financing package worth one billion US dollars for ...

    Celso Amorim with Brazilian President Luiz Inácio Lula da Silva

    Doha Trade Negotiations Collapse. Brazil and US Blame Each Other

    Disappointed with the World Trade Organization talks collapse over farm subsidies by the US ...

    Free TV for politicians

    Free TV Electoral Campaign in Brazil Is Measured in Hundredths of a Second

    Free political campaign advertising has started this Tuesday, August 17, in Brazil. Like the ...

    Brazil Gets Its First Hydrogen Fuel Bus

    Brazil will get tomorrow, November 14, its first hydrogen cell powered bus. The vehicle ...

    Indian leader Ambrósio Vilhalva

    Brazilian Indian Leader Murdered Following Death Threats by Landowners

    Brazil’s Guarani Indian leader and film-star Ambrósio Vilhalva was murdered on Sunday night, after ...

    Losing Patience with Lula

    Lula and his advisers have resurrected the old “supply-side” and “trickle-down” arguments pioneered by ...

    Confederations Cup in Brazil

    Brazil Expects Foreigners to Spend US$ 3.5 Billion During the World Cup

    Brazil is expecting to receive 600,000 foreign tourists for the 2014 World Cup, an ...

    Brazil Still Friends With Chavez After ‘Bush Is the Devil’ Remarks

    Celso Amorim, Brazil’s Foreign Relations Minister,  did not want to comment on the speech ...