Sao Paulo based mining company C2C Exploration announced today an increase in expected fourth quarter revenue due to increased iron ore exportation, predominantly to China.
Oct. 18, 2012 - C2C Exploration C.E.O Mr Chris Jarvis is quoted as saying “C2C Exploration has had an excellent year, and it appears from our financial data that we will see earnings slightly higher throughout the fourth quarter of 2012 due to increased iron ore sales”.
C2C's iron ore mine, is located in Northern Brazil, close to the famous Carajas iron ore mine, which is owned by the worlds second largest mining company Vale (VALE, VALE5.BR). Inconsistently, Vale reported only yesterday a fall to 83.9 million tonnes in its iron ore production; although this was attributed to heavy rains at Vale's mines in south-eastern Brazil earlier this year.
Furthermore, due to its size and stature, Vale has had environmental licensing problems which have curtailed the company's rapid expansion. This has meant that rather than being able to commence extraction in new areas, the company has been forced to continue mining old deposits, meaning lower than expected productivity of 83 million tonnes in place of the forecast 100 million tonnes of iron ore.
Thankfully this is not the case for C2C Exploration, who have seen a positive increase in not only demand, but production to meet that demand. This is excellent news for the company, which is in the process of expanding, and starts production at its Minas Gerais project site this quarter. It also adds substance to the apprenticeship scheme offers that are currently being made to local colleges in the São Paulo area.
“While many analysts have forecast iron ore prices falling due to lower demand from countries like China, who over the last 5 years have spend approximately 8 percent of their GDP on steel production, C2C Exploration looks very positive in the current situation, with strong iron ore sales contracts in place and gold production commencing in Minas Gerais”. C.E.O Mr Chris Jarvis.
C2C Exploration Raises Fourth Quarter Revenue Expectations