Brazil's Vale to enhance presence in Asia to vie with BHP, Rio Tinto+
16-MAY-2008 Intellasia | TMC.net
May 16, 2008 - 7:00:00 AM
|
|
Vale, the world's biggest iron ore producer, will enhance its presence in Japan and other Asian countries by improving logistics to vie with its key rivals BHP Billiton Ltd and Rio Tinto Ltd, Vale Chief Executive Officer Roger Agnelli said Wednesday.
If you don't have a telecommuting programme, how much revenue is your business losing? Learn more, download free white paper.
Discover how Unified Communications can help you gain the competitive edge, with more efficient internal operations, increased productivity and improved customer service. Learn more, download free white paper.
Discover the top 10 reasons to throw out your old PBX and replace it with a new software based IP PBX.
"They are big and strong companies. But we will not take second best," Agnelli said at a Tokyo hotel, when asked whether the Brazilian mining titan could outdo BHP, the world's biggest mining company, and Rio Tinto in meeting Asia's strong demand for minerals.
He said that Vale has the world's biggest reserves of nickel and bauxite and will double its output volume of nickel over the next four or five years.
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, September 16-18, 2008. Los Angeles, California.
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, September 16-18, 2008. Los Angeles, California.
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, September 16-18, 2008. Los Angeles, California.
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, September 16-18, 2008. Los Angeles, California.
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, September 16-18, 2008. Los Angeles, California.
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, September 16-18, 2008. Los Angeles, California.
To compete with BHP and Rio Tinto, he also said Vale sees that making improvements in logistics will hold the key as the two rivals have better access to Asian markets from Australia.
He said Vale, formally known as Companhia Vale do Rio Doce SA, has ordered 20 ore carriers of the 400,000-tonne class and believes that they will make huge logistical contributions to its operations in Asia in the years ahead.
"Asian markets are growing and they will continue to grow," the 49-year-old CEO said after signing financial and technological cooperation agreements with three entities backed by the Japanese government.
Vale's key rivals BHP and Rio Tinto, which are dual-listed companies in Australia and Britain, together account for about 40% of the world's iron ore market and 60% of Japan's iron ore imports.
BHP has launched a hostile takeover bid for Rio Tinto, the world's third-largest miner after Vale.
Market players, industry officials and antimonopoly authorities are keeping close tabs on the ongoing battle between BHP and Rio Tinto as Vale and the two companies account for about 80% of the world's iron ore output.
Agnelli said that whether the merger is realised will be left to the judgment of antimonopoly authorities and Vale will just concentrate on what it needs to do regardless of the results of the takeover bid.
On Wednesday, Vale signed agreements with the three Japanese entities-the Japan Bank for International Cooperation, Nippon Export and Investment Insurance and Japan Oil, Gas and Metals National Corp.-at the Tokyo hotel.
The bank will lend up to US$3 billion to fund joint projects in mining, logistics and power generation between Vale and Japanese companies, while the semipublic insurance body will provide a maximum of US$2 billion in loan insurance for domestic firms taking part in such projects under Vale's US$59 billion investment programme between 2008 and 2012.
Vale agreed with Japan Oil, Gas and Metal to share geological information on African countries, using Japan's know-how in remote sensing analysis, the two said.
Deepening ties with the Brazilian company is part of Japan's efforts to secure supplies of minerals vital for its manufacturing industries at a time when their prices are skyrocketing worldwide.
Japan is strengthening support for the private sector to have stable access to natural resources as China and other fast-growing Asian economies are becoming more competitive globally in getting hold of raw material supplies.
"On the back of increasing demand in Asia, resource and food prices are escalating," Akira Amari, Japanese minister of economy, trade and industry, said at the signing ceremony. "Every country in the world is facing a common challenge of how to ensure a stable supply."
|
 |
|
Advertising
