Postmasburg, South Africa — 25 June 2012 – Anglo American CEO Cynthia Carroll says the mining giant expects sustained growth in emerging economies in the medium term to be supplemented by an early recovery in the United States.
Speaking at the official opening of Anglo subsidiary Kumba Iron Ore’s Kolomela mine here, Miningmx quoted her as saying: “We believe that medium-term replacement of infrastructure in the developed world presents further opportunities for steel, with a bright future ahead for iron ore.”
In his address, Kumba CEO Chris Griffith said he saw the long-term price of iron ore ‘much higher’ than US$80/t, while existing supply-and-demand dynamics would sustain the commodity’s prevailing higher prices longer than markets had anticipated.
“Earlier predictions that iron ore prices would be ‘falling off a cliff’ by 2013 already seemed far-fetched,” he added. The spot price for benchmark 62% grade iron ore on Friday rose to US$137.40/t, according to Reuters.
Earlier in the day, Carroll said the R8.5 billion development of Kolomela was a ‘vote of confidence’ in South Africa. The project was delivered on budget and dispatched its first shipment to Saldanha in December; five months ahead of schedule.
The mine is still in ramp-up phase, with Griffith having committed to production of between 4Mtpa and 5Mtpa for 2012. It is expected to reach full operating capacity of 9Mtpa by 2013.
The group is currently busy with concept studies to expand production from its Northern Cape properties by another 15Mtpa, with pre-feasibility and feasibility studies scheduled for 2013 and 2014 respectively.
Source: Miningmx. For more information, click here.