Sumitomo Corp. and Usinas Siderurgicas de Minas Gerais SA’s venture may expand iron ore production by two thirds amid rising demand in Asia. Mr Toru Furihata managing executive officer of Sumitomo said that the venture with Usiminas may be able to boost estimated annual iron ore output to 50 million tonnes. That’s an increase on its plan to produce 30 million tonnes by 2015 from 7 million tonnes by expanding capacity at its mine in the state of Minas Gerais. Mr Furihata said that Sumitomo has agreed to pay USD 1.93 billion for a 30% stake in a unit of Usiminas as rising steel consumption in China and India drives demand and prices for the ore. The venture could further expand output by buying or developing mines, or paying royalties to producers near its project in the Serra Azul region. He said that Sumitomo will boost its iron ore supplies 10 fold by 2015 to about 10 million tonnes by taking a stake in the venture with Belo Horizonte based Usiminas. Sumitomo intends to sell the material to mills in Japan, China, India, South Korea and Taiwan.
