Vale to expand iron ore output with eye on China

Brazilian mining giant Vale SA said on Tuesday that it will expand its iron ore production capacity to 450 million metric tons from the present 340 million tons in two years.

According to industry sources, the move will help the company gain a bigger market share, but it could also lead to an industry reshuffle and shakeout.

Murilo Ferreira, president and chief executive of Vale, said in Beijing on Tuesday that the company will raise its annual capacity by 30 percent in the next two years, especially to provide China with more high-quality iron ore products.