Brazil’s Vale has formed a joint venture (JV) with China’s Ningbo Zhoushan Port Company to build and operate the West III project at China’s Shulanghu Port.
The project includes expanding the port facilities, developing a stockyard, and loading berths with an additional capacity of 20mn mt per year, Vale said in a statement on Friday.
Vale plans to secure a total port capacity of 40mn mt per year in Shulanghu through this project, which is expected to cost around $624mn with completion expected in the next three years. Under the JV, Vale will own 50pc of the project and both the stakeholders will obtain financing for up to 65pc of the facility.
The Brazilian miner anticipated achieving an annual iron ore capacity of 400mn mt by intensifying production from all of its operations. The company’s current production capacity is 318mn mt a year.