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CVRD pours US$4m into Zhuhai plant

By Gong Zhengzheng (China Daily)
Updated: 2006-10-24 13:38

Brazilian iron ore producer Companhia Vale do Rio Doce (CVRD) said yesterday it has begun building an iron ore pelletizing plant in China with two local steel mills.

The Zhuhai plant in South China's Guangdong Province is CVRD's first capital investment in the iron ore business in China, the world's biggest importer of the raw material for steel production, the group said in a statement.

CVRD invested US$4 million in the plant to give it a 25-per-cent stake, the statement said.

Two Chinese steelmakers Zhuhai Yueyufeng Iron & Steel Co and Pioneer Iron & Steel Group respectively control 40 per cent and 25 per cent shares in the plant.

The plant will be operational by the end of next year with an annual capacity of 1.2 million tons, CVRD said.

As one of the top three global iron ore providers, CVRD will supply at least 70 per cent of the iron ore used to feed the plant through a 30-year contract, it said.

China's iron ore imports have been growing rapidly in recent years to meet strong demand boosted by swelling steel production, despite price hikes in the international iron ore market.