IRON ORE
TABLE 2: CORPORATE CONTROL IN MINING, 2006
will now launch a series of new projects to try to increase the speed
Controlled Share of World
of adding capacity and recovery of lost market share. CVRD, in spite
Controlling Entity Country Production (Mt) Production (%)
of having invested heavily during recent years, is speeding up its cap-
1. CVRD Brazil 271 18.2
ital spending considerably.
2. Rio Tinto plc UK 129.5 8.7
In early 2007, a new strategy was announced, aiming at becoming
3. BHP Billiton Ltd Australia 115.2 7.8
4. State of India India 52 (e) 3.5
a player in the Chinese domestic market. This is going to be achieved
5. Arcelor Mittal UK 42.3 (e) 2.8 by opening up a massive additional 150 Mt of capacity in Brazil in
6. Metalloinvest Russia 38.1 2.6
the next four years. The production from these new mines will be
7. Anglo American South Africa 31.1 2.1
transported on new, very large, ore carriers with long-term shipping
8. Cleveland-Cliffs Inc USA 28.5 1.9
9. Mitsui & Co Ltd Japan 26.1 1.8
contracts to avoid the volatility of freight rates. After unloading in
10. LKAB (State) Sweden 23.3 1.6 China, ores will be blended and distributed by CVRD, which has also
11. Ferrominera (State) Venezuela 2.1 1.5
decided to take a 25% stake (together with a Chinese partner) in a
12. US Steel Corp USA 22.0 1.5
1.2 Mt pellet plant in Guandong, China.
13. System Capital Ukraine 17.5 1.2
14. Smart Group Ukraine 17.4 1.2
These moves will intensify competition in China and will mostly hit
15. Evraz Group Russia 17.0 1.2 traders, spot price exporters from India and smaller Chinese produc-
Total: 15 Largest 853 57.4% ers. CVRD has also decided to enter the coal business on a massive
Total: World 1,485 100
scale, aiming at 30 Mt production in 2010. In this way CVRD will be
Note: State of India includes SAIL, NMDC & others.
able to supply both major inputs for steel making (as are both Rio
Source: Raw Material Data, Stockholm 2007
Tinto and BHP-Billiton).
Africa, and a quicker than planned Rio Tinto plans to increase its output from 170 Mt (including joint
expansion in Brazil. The fact that iron ventures and on a 100% basis) in 2006 to 235 Mt by 2008. Since
ore prices increased in the 2007 round 2003, Rio Tinto has invested nearly US$5 billion in its Pilbara opera-
of negotiations was perhaps the final tions alone and capacity is expected to reach 220 Mt in 2009. Iron
hurdle to overcome before new invest- ore accounted for half of Rio’s capital spending in 2006. The devel-
ment decisions could be made in opment of Rio’s greenfield projects has been intensified and
boardrooms around the world. although no new announcements have been made recently, it will
The majors are, of course, anxious to come as no surprise if a decision is taken to go ahead at any of its
protect their market share, which major greenfield projects in Guinea (Simandou), Corumba Brazil or
declined in 2006. It seems that all three India (Orissa), as all of them are far advanced.
MT73MT110MT116MT114MT111MT100MT117MT99MT116MT105MT111MT110MT32MT116MT111
MT67MT97MT114MT98MT111MT110MT32MT84MT114MT97MT100MT105MT110MT103MT32MT38
MT65MT32MT67MT111MT109MT112MT114MT101MT104MT101MT110MT115MT105MT118MT101
MT70MT105MT110MT97MT110MT99MT101MT32MT83MT101MT109MT105MT110MT97MT114 MT72MT97MT108MT102MT45MT68MT97MT121MT32MT67MT108MT97MT115MT115MT114MT111MT111MT109
MT83MT101MT109MT105MT110MT97MT114
MT40MT67MT80MT69MT32MT65MT112MT112MT114MT111MT118MT101MT100MT41
MT183 MT78MT101MT119MT32MT89MT111MT114MT107MT32MT150MT32MT83MT101MT112MT116MT101MT109MT98MT101MT114MT32MT49MT57MT116MT104
MT84MT97MT117MT103MT104MT116MT32MT98MT121MT32MT98MT101MT115MT116
MT115MT101MT108MT108MT105MT110MT103MT32MT97MT117MT116MT104MT111MT114MT32MT111MT102MT183 MT83MT97MT110MT32MT70MT114MT97MT110MT99MT105MT115MT99MT111MT32MT150MT32MT79MT99MT116MT111MT98MT101MT114MT32MT50MT110MT100
MT147MT87MT104MT97MT116MT32MT87MT101MT110MT116MT32MT87MT114MT111MT110MT103
MT183 MT72MT111MT117MT115MT116MT111MT110MT32MT150MT32MT79MT99MT116MT111MT98MT101MT114MT32MT49MT56MT116MT104
MT97MT116MT32MT69MT110MT114MT111MT110MT148
MT183 MT65MT116MT108MT97MT110MT116MT97MT32MT150MT32MT79MT99MT116MT111MT98MT101MT114MT32MT50MT52MT116MT104
MT38MT32MT67MT104MT97MT105MT114MT109MT97MT110MT32MT111MT102
MT71MT108MT111MT98MT97MT108MT32MT67MT104MT97MT110MT103MT101MT183 MT87MT97MT115MT104MT105MT110MT103MT116MT111MT110MT32MT68MT67MT32MT150MT32MT79MT99MT116MT111MT98MT101MT114MT32MT50MT56MT116MT104
MT65MT115MT115MT111MT99MT105MT97MT116MT101MT115
MT80MT101MT116MT101MT114MT32MT67MT46MT32MT70MT117MT115MT97MT114MT111
MT70MT111MT114MT32MT102MT117MT114MT116MT104MT101MT114MT32MT105MT110MT102MT111MT114MT109MT97MT116MT105MT111MT110MT32MT111MT114
MT116MT111MT32MT114MT101MT103MT105MT115MT116MT101MT114MT44MT32MT112MT108MT101MT97MT115MT101MT32MT103MT111MT32MT116MT111MT58
MT119MT119MT119MT46MT112MT103MT115MT101MT110MT101MT114MT103MT121MT46MT99MT111MT109MT47MT70MT49MT49MT50MT67MT108MT97MT115MT115MT114MT111MT111MT109MT46MT104MT116MT109MT108
MT111MT114MT32MT99MT97MT108MT108MT32MT43MT49MT45MT52MT49MT50MT45MT53MT50MT49MT45MT52MT55MT51MT55
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