Vale flags iron production cuts

Vale, the world's largest iron-ore producer, is considering cutting output from its most expensive mines after a global supply glut caused prices to plummet. Vale will replace production from high-cost mines with lower-cost iron-ore as it adjusts to a weak market, said Peter Poppinga, the company's executive director for ferrous and strategy. As much as 30 million metric tons a year may be trimmed, he said. "If the market demands it, we are ready to reduce some production flows in the Southeast to optimise and increase our margins even more," Poppinga said on a conference call Thursday, referring to one of its main producing regions in Brazil. The comments from the world's largest iron-ore producer come after rival BHP Billiton said April 22 it will defer port works in Australia, slowing its expansion. Read the full article: (VIEW LINK) or access the report from Vale: (VIEW LINK)