Vale Cuts Iron Ore Production

Vale (formerly CVRD), the Brazilian mining giant and world's top producer of iron has announced that it will slash its annual production of ore by 30 million tons, which accounts for roughly nine percent of its 2008 forecast.

The reduction comes as the credit crisis has forced steelmakers to cut their own production quotas by 20 percent, on average -- a potent indicator of the economic conditions that are still yet to come.

The company also plans to trim production for aluminum and manganese ore.

> Vale adjusts to the new global economic scenario [official press release]

BHP, Rio Forced to Share Pilbara Railways

It seems as though Fortescue Metals, considered a "third force" in Australia's Pilbara, has succeeded in its bid to secure acceess to the region's strategically-significant railyway lines, currently operated soley by heavyweights BHP Billiton and Rio Tinto.

Australian Federal Treasurer Wayne Swan today opened three key lines to third-party access, forcing the current duopoly to negotiate with other mining firms for entry contracts for the next 20 years.

Fortescue truly entered the big league of iron when it delivered its first shipment of Pilbara ore to China in May of this year.

(For just an idea of how much tonnage the special delivery trains can haul, watch this YouTube video)

> BHP Billiton, Rio Rinto angry on open Pilbara rail line [Herald Sun via news.com.au]