Vale says huge iron ore expansion needed globally to replace old mines

A huge expansion of global iron ore output is needed as
older mines become depleted, a senior executive of Brazilian miner Vale SA
said, adding that the company's medium-term strategy was to maximise production
at its mines.

Luiz Meriz, president of Vale Minerals China, also told
at an industry conference in Beijing on Tuesday that the company was in talks
with countries around the world, including Japan and South Korea, to dock its
fleet of Valemax giant ore carriers, which range from 380,000-400,000 tonnes in
size.

“Our strategy is to continue maximising output even
when supply becomes more balanced in future,” Meriz said.

Meriz said Vale had invested $15.1 billion between 2010-2011
to boost production and to raise operational efficiency. It is looking to its
Valemax vessels to better compete with Australian rivals Rio Tinto Ltd and BHP
Billiton Ltd .

Source: Bloomberg