Vale's iron ore production will only grow if prices rise

The chief executive officer of Brazil's Vale SA, the world's largest iron ore producer, said in an interview published on Sunday that the company would only ramp up annual production to 450 million tons if prices rise.

Vale CEO Fabio Schwarzman told Estado de S. Paulo newspaper that the company will operate at full capacity of 450 million tons when prices rise. Until then, he said, production will support about 400 million tons.

Schwartzman's comment comes after Vale reported last month that it had record iron ore and pellet production in April-June. At the same time, he said that this year it has reached its target of 390 million tonnes of iron ore production.