On January 27, Brazil's Companhia Vale do Rio Doce (CVRD), one of the world's top mining giants, announced a plan to establish a joint venture pellet processing plant in Zhuhai, south China's Guangdong Province. This is CVRD's first business venture in China, which aims to grab more of the Chinese market.
Martins, executive director of CVRD, said that his company would build more joint venture pellet processing plants in China and is conceiving to rent or build top-size ore transport vessels, so as to gain a more competitive edge against Australian ore producers that are geographically adjacent to Chinese markets.
The plant, with an annual output targeted at 1.2 million tons will officially start operations this year. CVRD will pour US$ 4 million to the plant. The company, in accordance with a 30-year contract with its Chinese partners, will provide at least 70 percent of the needed iron ores for production.
Martins commented that CVRD's first investment in China, although not large, showcases their confidence in the future development in the Chinese market. He also revealed that based on CVRD's Chinese market study, the company plans to make its Chinese pellet processing plants output as much as 40 million tons of products annually.
For more details, please read the full story in Chinese. (http://www.china-cbn.com/s/n/000004/20080128/020000070007.shtml)
(China.org.cn January 28, 2008)
