Brazilian mega-miner Vale is considering investment in Australian iron ore mines to overcome its cost disadvantage of shipping to China.
“Vale is trying to diminish this handicap by investing more in Australia and eventually being able to sell iron ore from Australia straight to China,” the Brazilian ambassador to Australia, Rubem Antonio Correa Barbosa, told The Australian Financial Review.....
Vale chief executive Murilo Ferreira said “It is our duty to analyse all of the opportunities through junior companies”
It seems to me that Atlas would be the prime oppurtunity for Vale to move into the Australia. Can anyone think of any other businesses that Vale might consider?
I would think it would be in Vales interest to move sooner rather than later.
If Vale made a move there is also a chance that Chinese interests could also bid.
AGO Price at posting:
$2.82 Sentiment: Buy Disclosure: Held
