Global iron ore production will grow modestly due to mine restarts and expansions in Brazil and India which will boost production. Meanwhile, output growth in China will decline on the back of falling ore grades and high costs of production.
The Memorandum of Understanding signed by Vale and FMG in March 2016 to blend their iron ore grades will improve the miners' price competitiveness. Although the joint venture will not affect output targets, it will pave the way for more of such consolidation over the coming years.
Mineral production growth will continue to slow on the back of continued mineral price weakness, which will force miners to cut capex, limiting the number of new projects coming online. Nevertheless, some opportunities remain, as various mining countries will continue to see solid industry growth and Chinese outbound investment will remain strong.
A member of our Client Services team will be in touch soon to arrange a convenient time for a free demonstration of the service. If your enquiry is urgent, please email our team here.
Thanks, BMI Research