Sao Paulo, Brazil, 29 Sept – Brazilian mining giant Companhia do Vale do Rio Doce (CVRD) is to become a shareholder in Zhuhai YPM, a joint venture build a factory for producing pellets in the Chinese province of Guangdong, the company said in a statement.
CVRD, via its subsidiary Minerações Brasileiras Reunidas, will have a 25 percent share in the new company and the remaining shareholders will be Zhuhai Yueyufeng Iron and Steel Co Ltd., with 40 percent, and the Pioneer Iron & Steel Group Co. Ltd., with 35 percent.
The factory will be located in Zhuhai, the special economic area next to Macau in Guangdong province, and should start operating in 2008, with an estimated production capacity of 1.2 million tons of pellets per year.
CVRD’s investment in the project will total US$4 million and the company will supply at least 70 percent of the iron ore used to supply the factory over 30 years.
This is the first time CVRD has invested in the iron ore business in China. (macauhub)