China: Brazil’s Vale in negotiations with Chinese steel makers to build factories in China

26 May 2008

Hong Kong, China, 26 May – Brazilian mining giant Vale is negotiating with Chinese steel making companies to build factories in China for iron ore pellet production, Hong Kong’s South China Morning Post reported Saturday.

Citing Michael Zhu, chairman of Vale China, the paper added that the Brazilian group was also negotiating joint shipbuilding investments with its customers with a view to transporting the iron ore.

Vale already has a 25 percent stake in a pellet factory in Zhuhai, which began operating in January.

Zhuhai Yueyufeng Iron and Steel Co Ltd and Pioneer Iron & Steel Group own the remaining 40 and 35 percent, respectively.

In January, Shanghai Securities News reported that Vale planned to build six pellet factories in China, with a combined capacity of 10 million tonnes. (macauhub)