James Harman, head of business development for AngloAmerican’s iron ore and coal divisions, forecasts world crude steel production would grow to about 1.8bn tons by 2015 from about 1.4bn last year, supporting a need for more iron ore.
“Urbanization in China will drive demand for our key metals and minerals, with a greater focus on high-quality materials” he said.
By 2020 AngloAmerican could be producing as much as 150 million tons of iron ore annually if studies underway at the company’s Minas-Rio project in Brazil continue to show strong potential for growth.
A Citibank analyst forecast a global iron ore supply glut of around 100 million tons by 2015 due to over-production from new projects. There will be about 30-50 million tons of increased demand from the reconstruction of Japan.