Arabian Supply Chain

Home / ANALYSIS / FEATURE: Vale – Mining giant logistics


FEATURE: Vale – Mining giant logistics

by ASC Staff on May 31, 2017


Vale is one of the largest mining companies in the world. It’s based in Brazil, but has operations in more than 30 countries around the world and commands a significant share of the iron ore market, especially when it comes to the seaborne iron ore market.
Vale is one of the largest mining companies in the world. It’s based in Brazil, but has operations in more than 30 countries around the world and commands a significant share of the iron ore market, especially when it comes to the seaborne iron ore market.

SEE ALSO: Vale and Sohar Port celebrate ore carrier milestone

SEE ALSO: Vale Oman wins Manufacturing at Logistics ME Awards

SEE ALSO: Vale receives world's largest iron ore carrier in Oman

Vale is one of the largest mining companies in the world. It’s based in Brazil, but has operations in more than 30 countries around the world and commands a significant share of the iron ore market, especially when it comes to the seaborne iron ore market.

Vale is one of four companies that dominate global iron ore production: namely, BHP Billiton, Vale, Rio Tinto, and Fortescue Metals Group. Together these companies control more than 70 percent of the seaborne iron ore market and with the current volatility in the price of steel, Vale is looking to take control of more market share.

The Brazilian mining giant has outlined plans to increase iron ore production by approximately 40 percent between now and 2018 and to cut cash operating cost to US$19.6 per metric ton. BHP Billiton also plans to increase production by approximately 65 million tons per annum and cut cost to below US$20 per metric ton.

Rio Tino has already increased capacity; it now plans to increase capacity utilization significantly and keep cost at or below US$20 per metric ton. For Vale, its facilities of SOHAR Port & Freezone are essential to these plans.

The company exports its iron ore and pallets aboard huge Valemax bulk carriers that are the largest ships of their kind in the world. This, along with its geostrategic ambitions, is the reason why the company set up operations in SOHAR Port & Freezone back in 2011. Vale’s Omani subsidiary, Vale in Oman, gives it competitive access to China. More than two-thirds of all seaborne iron ore is purchased by China.

A lot of that ore, historically, has come from Australia which, along with Brazil, supplies about 80 percent of China’s iron ore. Australian iron has a logistical advantage in being closer to the Chinese port of Qingdao, but by establishing geostrategic facilities such as Vale in Oman at SOHAR, the company has mitigated that advantage. Brazil picked up 4 percent of the market in 2016.

Article continues on next page…


FEATURED COMMENT

Please click here to comment on this article

COMMENTS

Name *
Email *
City
Country
Subject: *
Comments: *


  • LATEST ANALYSIS

NEWSLETTER SUBSCRIPTION
Email:


Supply Chain and Transport Awards (SCATA)
Linkedin
Construction Week Online Middle East
Hotelier Middle East
Arabian Oil and Gas Middle East
Utilities middle east

RELATED ARTICLES


Articles
Companies