Vale signs deal with Chinese company for new iron ore product

Vale has signed a service agreement with China’s Ningbo Zhoushan Port for the launch of a new iron ore product called GF88.

Under the deal, Ningbo Zhoushan Port will provide services for Vale’s new product, including construction, processing, loading, and storage.

Vale said in September it would start supplying a high grade iron ore product in the first quarter of 2020, GF88, produced by processing its Carajas IOCJ 65% ores.

“GF88 production does not require fuel and water, so it will not generate waste or water waste,” Vale said in a statement, adding that the product can provide raw material for pellet production. “It’s a new product, designed specifically for the new era of China,” Vale said.

China’s demand for high-quality iron ore pellets is set to gain momentum by 2020 as the Chinese government pressures dozens of steelmakers to move to coastal regions amid a fight against pollution in their industrial cities.

The start date and production amount of GF88 are still under discussion between the two companies, a Ningbo Zhoushan Port spokesman told Reuters.

The product will be manufactured at the Shulanghu ore transfer terminal in eastern China’s Zhejiang province, according to Ningbo.

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