Help Desk -
9717405332, 9599714297, 9810335381

Global iron ore miners accelerate integration into China

Steel News - Published on Fri, 17 May 2013

In March this year, Vale CFO Luciano Siani signed a 100 million dollar worth contract with China Harbor Engineering Company Limited and Shanghai Zhenhua Heavy Industry Co Ltd to support expansion in iron ore expansion project in Carajas and coal expansion work in Mozambique.

In the past five years, Vale had bought from China around 10 billion dollars of products and services and in the future, Vale said will enlarge purchases from China.

Rio Tinto
Over the past three years, Rio signed a lot of contracts with Chinese businesses like state run CNR Qiqihar Railway Rolling Stock Co., Ltd, Xiangdian Electric Manufacturing Group Co Ltd, Dalian Bihai Environmental Protection Equipment Co, Ltd, with purchase rising to 1.5 billion dollars in 2012 or 25.94% out of its net earnings in 2011.

Rio Tinto has been increasing purchase from China since 2001. In 2011, Rio purchased more than 1 billion dollars from China, including USD 300 million of raw material, USD 200 million of chemical products and USD 500 million equipment purchase. In 2012, the purchased stayed at 1.7 billion dollars on raw material and equipment, or 9% of its global purchase. The figure will continue to increase in 2013, Ramsay Chu, head of the miner\'s procurement department was quoted by China Daily on January 12, who declined to elaborate.

Equipment purchases from China would lower cost by at least 20% compared to purchases from other countries, Mark Rivers, General Manager Emerging Markets (China and India) at Rio Tinto, was quoted as saying.

BHP purchases in China would rise to 1 billion dollars in 2012, Dirk Van De Putte, BHP’s head of procurement said on December 15, 2011 in Shanghai, noting that the company \"plans to spend USD 6 billion in China to purchase infrastructure facilities and consumables in the next five years.”

In China, BHP’s annual purchase was not more than 100 million dollars in 2007, 800 million dollars in 2011.

Source -
China steel information centre and industry database


Posted By : admin on Fri, 17 May 2013
Related News from Steel segment