China: Brazil’s Vale wants to build six iron pellet factories

29 January 2008

Shanghai, China, 29 Jan – Brazilian mining giant Vale (formerly Companhia do Vale do Rio Doce – CVRD), the world’s largest iron ore producer, plans to build six iron pellet producing units in China, which is its main market for iron ore, according to Monday’s edition of financial newspaper Shanghai Securities News.

The paper cited the director of ferrous products of Vale, José Carlos Martins, as saying that the joint production of the six units would be over 10 million tons per year.

At the end of the week, Martins visited a pellet factory in Zhuhai, southern China, which is a joint venture with an investment of around US$50 million and production of 1.2 million tons per year.

Vale has a 25 percent stake in the business and will provide iron ore over a 30 year period.

Vale’s partners in the venture are Zhuhai Yueyufeng Iron and Steel with 40 percent, and Pioneer Iron and Steel Group, one of the largest importers of iron ore in China, with 35 percent. (macauhub)