* BHP says Brazil, Australia alone can meet demand
* West Africa aiming to break into iron ore market
* Vale says reviewing Simandou project in Guinea
By Clara Ferreira-Marques
LONDON, Oct 25 (Reuters) – BHP Billiton ,
the world’s largest miner, cast doubt on the fate of dozens of
West African iron ore projects on Thursday, arguing Australia
and Brazil alone can feed global demand for the steelmaking
ingredient.
The remarks come hot on the heels of a decision on Wednesday
by Brazil’s Vale, the world’s top iron ore miner, to
put on hold plans for its $5 billion Simandou project in Guinea,
a move analysts have blamed on weaker iron ore prices and an
uncertain political situation in the country.
Though not unexpected given its focus on the $19.5 billion
Serra Sul project in Brazil and the slow pace of development in
Guinea, Vale’s decision is a blow for Conakry and for a broader
West African region battling to break in to the iron ore market.
“We believe the production in Brazil and in Australia will
be sufficient to meet demand and there is increasing consensus,
and a recognition by investors and the market, that this is
indeed the case,” BHP Chief Executive Marius Kloppers told
reporters on the sidelines of a shareholder meeting.
“Progressively, you have seen other companies come to a
conclusion that is closer to our position.”
Continued…
