Brazilian iron ore mining giant Vale has struck a deal with Chinese state-owned port operator Ningbo Zhoushan Port to create additional capacity to handle iron ore shipments at Shulanghu Port as it moves to increase its market share in China.
The US$624 million project in Zhoushan, Zhejiang province, is particularly strategic for Vale as it increases the amount of iron ore the miner can ship to China.
The joint venture, known as the West III Project, will allow for the handling of an additional 20 million tonnes of iron ore a year at the port, which is located south of Shanghai. Vale’s participation in the project will increase its annual iron ore capacity at the port to a total of 40 million tonnes.
Vale and Ningbo Zhoushan, which is part of the larger Zhejiang Provincial Seaport Investment & Operation Group and one of China’s largest terminal operators, will have an equal stake in building, owning and operating the new port facility.
