Vale and Ningbo Zhoushan form partnership to invest US$650 million in iron ore

Vale and the Chinese port of Ningbo Zhoushan signed an agreement to invest about 4.3 billion yuan (US$ 650.6 million) in iron ore storage and processing facilities in Zhejiang, according to the local Chinese government.

The move follows the opening of a grinding center by the two companies in the east China port in August and increases Vale’s presence in the country, the largest global consumer of the material used in steelmaking.

The second-largest mining company in the world, Vale will have 50% of the joint venture, while Ningbo Zhoushan Port will also have the same share. The unit’s launch plan had been signaled in a statement last month. The joint venture will have a registered capital of 1.5 billion yuan.

“The proposal is to build an iron ore storage yard with a maximum capacity of 4.1 million tons and a ‘blending’ and ore processing unit, as well as two shipping berths,” said the Zhejiang Free Zone in its official Wechat account. “The ‘blending’ and processing unit will handle an annual capacity of 21 million tons of ore,” he added.

“The construction of this project will further strengthen the distribution capacity of the Shulanghu ore transfer terminal,” according to the statement, referring to the location of the grinding center where Vale has been producing high-grade iron ore.

Source: Reuters

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