MercoPress. South Atlantic News Agency

World's largest iron ore miner hikes price 11% to Asian clients

Brazil's Companhia Vale do Rio Doce, the world's largest iron ore miner, said it is negotiating price increases with its clients in Asia to put them at the same rate as European customers.

The Rio de Janeiro-based firm said reference prices for Asian clients are 11 to 11.5% less than those charged European clients depending on the type of iron ore that is purchased. In a statement, the Brazilian company said the talks are ongoing and there is no guarantee it will succeed. However, if it is successful, Vale said the price hike would translate into an estimated revenue increase of less than 3% of the 35.5 billion US dollars revenue Vale posted for a 12-month period that ended June 30. In related news the Brazilian Institute of Mining, Ibram, said on Wednesday that mining investments in Brazil are expected to grow to 57 billion US dollars in the next four years from the current 42 billion. On the top of the list to receive investments from 2007 through 2011 is the iron ore sector, followed by nickel and aluminum, the institute said in its fifth revision in the past two years of its four-year forecast. Brazil's Vale, the world's largest iron ore miner is the main producer on the local market, but large and small international miners are present in Brazil. Specialists in mining say most of the investments will be directed toward expanding capacity to attend to demand on the international market. In 2006, total mineral output from Brazil amounted to around $36 billion US dollars according to Ibram estimates. Brazil accounts for about 19% of the world's iron ore, 14% of the world's aluminum, 40% of the world's manganese and 95% of the world's niobium, as well as several other minerals, according to Ibram.