Brazilian miner and iron ore producer Vale and Ningbo Zhoushan Port Company Limited have established a joint venture (JV) to operate a port project expansion, known as West III Project, Vale said on Friday.
Vale said the JV will expand the existing Port of Shulanghu in China to build a stocking as well as loading berths. The expansion would help Vale achieve a 40 million mt/year iron ore capacity at the Port of Shulanghu.
Vale said the companies will invest about $624 million (RMB 4.3 billion) to build the expansion project within three years. The new facility will have a 20 million mt/year iron ore capacity. Vale said it will own a 50 percent stake at the JV.
Both Vale and Ningbo will seek third party financing for up to 65 percent but not less than 50 percent of the project’s total investments. Vale said it will contribute between $109 and $156 million with capital for the project.