MetalBiz cited Mr Zou Jian the former president of China Metallurgical Mining Enterprise Association as saying that in the long run, the worldwide iron ore supply shows the trend of substantial growth.
In 2012, the increase in supply by iron ore mining enterprises in Brazil and Australia will reach 300 million tonnes and China's ability to provide finished products mines at 100 million tonnes together with new supply of other countries so that the global new added supply of iron ore will exceed 500 million tonnes.
Mr Zou Jian said that currently three big ore mines increase investment in iron ore. Brazil Vale invests USD 59 billion for production in next five years. About 30% of investment is used to exploit black mineral and the production capacity of iron ores will rise from 296 million tonnes in 2007 to 422 million tonnes in 2012 an increase of about 130 million tonnes. The production capacity all the Brazil will reach 475 million tonnes and the supply increases about 140 million tonnes. And Australian ore production capacity in 2012 will stand at 460 million tonnes an increase of about 160 million tonnes.
In addition, West Africa, South Asia, Eastern Europe and other countries also have 30 million tonnes to 50 million tonnes of new iron ore capacity; China will also increase its investment of around 50 million tonnes iron ore supply at abroad. The increase of the finished product supply capacity in China domestic will also exceed 100 million tonnes.