ANZ bank preparing joint venture in China with Brazil’s CVRD

11 July 2007

Hong Kong, China, 11 July – Australian and New Zealand banking group ANZ has announced it is providing a project finance facility for an iron ore pellet venture in China in a joint venture involving Brazilian mining giant Companhia Vale do Rio Doce (CVRD).

The new plant will be the first project resulting from the Zhuhai YMP Yueyufeng Iron and Steel joint venture set up in 2006 by CVRD, Zhuhai Yueyufeng Iron and Steel and Pioneer Iron and Steel.

CVRD has a 25 percent stake in the YMP venture that will produce 1.2 million tons of iron ore pellets per year-

The YMP unit will produce iron ore pellets for the Yueyufeng Iron and Steel plant, while CVRD will supply ore to YMP under a 30-year contract. Pioneer will provide transport logistics.

ANZ is the sole arranger and account manager for financing and will also provide YMP with initial working capital for iron ore imports.

China is the world’s biggest steel producer and consumer, importing around half its iron ore needs, in spite of rising national production. Brazil became the biggest supplier of iron ore to China last year. (macauhub)