Vale and Ningbo Zhoushan Port will each hold 50% in the joint venture (JV), whose proposed creation was flagged in a filing in October. Credit: Bishnu Sarangi from Pixabay.

Brazilian iron ore miner Vale and China’s Ningbo Zhoushan Port have reportedly agreed on a deal to invest CNY4.3bn ($650.6m) in iron ore storage and processing facilities in the Chinese province of Zhejiang.

The latest move follows the inauguration of Shulanghu Grinding Hub in August by the two companies at the port in eastern China.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The move further enhances Vale’s presence as one of the top global consumers of iron ore.

Vale and Ningbo Zhoushan Port will each hold 50% in the joint venture (JV), whose proposed creation was flagged in a filing in October.

According to the filing, Vale has partnered with Zhoushan Port Company to build and operate Project West III in the port of Shulanghu.

The JV will have a registered capital of CNY1.5bn, said Reuters.

Marking Vale’s Shulanghu grinding hub, the first in the country, is located in the Shulanghu Ore Transfer Terminal, in Zhoushan City, Zhejiang.

It comprises three production lines, which can produce three million tonnes per annum (Mtpa) of ore. The grinding hub generates a completely new product, known as GF88.

Zhejiang Free Trade Zone stated: “It is proposed to build an iron ore storage yard, with a maximum capacity of 4.1 million tonnes, an ore blending and processing facility and two shipping berths.”

The blending and processing facility is expected to have a capacity of 21Mtpa of ore.

Referring to the grinding hub site, the company’s statement added: “The construction of this project will further strengthen the distribution capacity of the Shulanghu ore transfer terminal.”

In September, Vale and NORCAT launched the NORCAT Open Innovation Challenge to seek out solutions to improve safety, efficiency and sustainability.