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“We are currently experiencing a market adjustment on the back of the commissioning of new mining capacities, which is normal for the long iron ore cycle,” he said.
He believes the current market slowdown reflects a financial crisis, mainly in Europe, and not a crunch in the mineral resources sector.
Agnelli is now chairman of B&A Mineração, a joint venture between his investment firm AGN Participações and Brazilian investment bank BTG Pactual with a focus on developing iron ore, copper and fertiliser projects in Latin America and Africa.
He sees a growing demand for iron ore in the near-term, driven not only by China, but also by other Asian countries and emerging economies.
Asia will strongly invest in infrastructure projects in the coming years as part of its urbanisation process, while emerging countries will continue to have a healthy demand for mineral resources to keep their growth pace, he said.
“Around 10,000 new cities will be built by 2050,” he added.
Agnelli left Vale in 2011 after serving 10 years as its ceo.