Planes worth 311 million tons of iron ore output in 2011 to meet demand in Asia

Vale SA, the world's largest exporter of iron ore, plans to produce 311 million tons next year to meet expected demand in Asia for raw materials used to make steel.

Roberto Castello Branco, Vale's director of investor relations, made the forecast today in a press conference in Hong Kong, where the Brazilian company will list depositary receipts on 8 December to demonstrate its commitment to Asia.

Global demand for iron ore will be greater than the supply in the coming years due to growth in Asia, CFO Guilherme Cavalcanti said at the conference. It may also seek to list in Shanghai where possible, he said, without giving any timetable.

"The main part of our increased production goes to Asia," said Cavalcanti,

Vale list, with the participation certificates of deposit 259 million to 393 million common and Class A preferred depositary receipts will be the first of these by a foreign company in Hong Kong.

JPMorgan Chase & Co., sole sponsor of the list, is responsible for a series of Vale shares to be transferred to Hong Kong. Common depositary receipts trading with the ticker 6210 Hong Kong, while certificates of deposit, preferred to go by the Hong Kong ticker 6230.

"Focus on Asia

The main reasons for their inclusion in Hong Kong include the need to raise the profile of Vale in Asia and demonstrate its "commitment, and focus on, Asia", according to a document with the list handed out today. The possibility of benefiting from high liquidity levels in Hong Kong is another reason for their inclusion in china town, the document shows.

Hong Kong presented certificates of deposit in 2008 to include foreign companies are prohibited from registering shares overseas. Russia joins Vale United Co. Rusal and headquartered in Luxembourg International SA L'Occitane in seeking access to Chinese investors.

Companies raised a record 45.4 billion U.S. dollars through IPOs in Hong Kong this year. Vale is seeking closer access to China, the largest consumer of iron ore, after its third-quarter profit more than tripled from a year earlier on increased prices and demand from Asia.

Price to Earnings

Shares of Brazilian companies trading on 10.60 times estimated earnings. The shares trade on the Brazilian Bovespa stock at an average of 13.31 times earnings estimates, while stocks in the Hang Seng index in Hong Kong in question, have an average price earnings ratio of 14 68.

A list of success could pave the way for other Brazilian companies to trade in Hong Kong. Petroleo Brasileiro SA, the state oil company, is considering selling CDs in Hong Kong, the newspaper Ming Pao reported on 16 November.

It plans to almost double the investment to $ 24 million next year as it expands production of iron ore and boost nickel, copper and fertilizer companies, said Oct. 28. The company aims to boost production of minerals and metals by 16 percent annually between 2011 and 2015, compared with a rate of 9.8 percent from 2003 to 2008.

growth in demand for iron ore may return later this year after China faces overcapacity in the steel industry, Chief Executive Jose Carlos Martins, said in September.