CVRD and Chinese companies ink supply agreement

Brazilian Companhia Vale do Rio Doce (CVRD), the largest iron ore miner in the world, has announced that it signed long-term iron ore supply agreements with two major Chinese steelmakers at the beginning of week 38. According to the announcement from the company, CVRD signed a long-term agreement with China's Anhui province-based Maanshan Iron & Steel Company (Magang) for the first time. The agreement foresees shipment of 7.3 million metric tons of iron ore per year from 2007 to 2013. Magang also has an option to increase the quantity to 8.3 million metric tons per year from 2009. Furthermore, CVRD also extended its long-term agreement with Liaoning province-based Beitai Iron & Steel Company (Beitai Steel) to the year 2031 for shipment of 4.2 million metric tons iron ore per year; marking the longest-termed agreement with a Chinese customer. The agreement also includes an option, allowing Beitai Steel to increase the iron ore quantity to 7.2 million metric tons from 2009. CVRD also announced that it has signed a strategic alliance agreement with Beijing-based Shougang Iron & Steel Group (Shougang) in order to develop cooperation in the mining and steel industries. Shougang is the 6th, Magang is the 9th and Beitai Steel is the 19th largest steelmaker in China.