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Brazil's Vale enters JV to expand Chinese port

9th October 2020

By: Reuters

  

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SAO PAULO – Brazilian miner Vale has teamed up with China's Zhoushan Port Company to build and operate Project West III in the port of Shulanghu, according a securities filing on Friday, a strategic logistics alliance to serve the world's largest iron-ore importer.

Vale said it will have 50% of the JV, adding the port project expansion will demand multi-annual investments of about $624 million. Both partners plan to obtain financing for up to 65% of the project, the filing said.

The West III Project consists of expanding the facilities at the Shulanghu Port, developing a storage yard and loading berths with an additional capacity of 20-millions of metric tones per year.

By participating in the project, Vale said it will guarantee a total port capacity of 40-million tonnes a year in Shulanghu, which will help Vale to optimise costs in its value chain, according to the filing.

Edited by Reuters

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