Vale says US debt is worrying

The Brazilian mining company, Vale, has stated that the debt levels in the US are much more worrying than the state of the Chinese economy.
Murilo Ferreira, Vale’s CEO, commented at the Melbourne Mining Club that the iron ore price is still relatively strong at $110 USD per ton and would average around that level for the next several years. Vale is quickly expanding their iron ore production with plans to lift exports from 311 million tons yearly to 450 million tons by 2018. This expansion will see Vale’s average cost of production fall to about $18 USD per ton before shipping.

Mr. Ferreira commented, “It’s very clear for us that we have in average a floor in the range of $US110 per ton … I believe the next one to two years will see this range. In the last five years we have not seen a quarter of a price that is below $US110 including in 2012 when in September the price was $US87.”

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