Fortescue Metals Group Ltd, Australia's third-biggest iron ore producer, will invest $10 billion to expand its iron ore production capacity to meet the growing demand mainly from China, said the company's CEO Neville Power on Sunday during the Boao Forum for Asia Annual Conference held in South China's Hainan province.
He said FMG will have 155 million metric tons of production capacity by the end of 2013 and up to 90 percent of the output will supply the Chinese market.
By then, the company's iron ore supply will account for about 20 percent of
"President Xi Jinping's remarks during the Boao Forum show that the Chinese government will continue to make efforts on economic development and improving people's living standards and we are honored to participate in the process as a supplier for such an important resource," Power said.
Sam Walsh, CEO of the world's third-largest miner Rio Tinto, shared similar views with Power.
During the China Development Forum last month, Walsh told China Daily that
At present, a third of Rio Tinto's revenue is from the Chinese market.
Dalian Commodity Exchange, one of the three major commodity exchanges in the country, is preparing to launch iron ore futures, hoping it can give Chinese steel companies a bigger say in iron ore prices in the international market.
FMG's iron ore business has been highly dependent on the Chinese market since it exported the first cargo of iron ore to
So far, it has supplied more than 200 million metric tons of iron ore in total to
In 2012, the company supplied iron ore to 52 Chinese steel mills with a closer cooperation relationship.
Valin Group Co in
"The global iron ore market is monopolized by giant producers and FMG is working on breaking the monopoly by providing more choices of high-quality iron ore to Chinese customers," said Liu Xiaodong, marketing director of the company.