CVRD, Yueyufeng and Pioneer form Chinese pellet JV

Brazilian mining giant Companhia Vale do Rio Doce (CVRD) has announced the signing of a joint venture agreement with China's Guangdong province based Zhuhai Yueyufeng Iron and Steel Co. Ltd (Yueyufeng) and Indian mould casting company Pioneer Iron & Steel Corporation Ltd for the construction of a pellet plant in Guangdong, China. CVRD will own a 25 percent stake in the joint venture through its subsidiary Mineracoes Brasileiras Reunidas S.A, while 40 percent of the joint venture will belong to Zhuhai Yueyufeng, with the remaining 35 percent owned by Pioneer. The name of the joint-venture will be Zhuhai YPM, and it will operate the plant to be constructed in Zhuhai city of China's southern Guangdong. The new factory, which is expected to begin operating in 2008, will have a 1.2 million ton per year pellet production capacity. CVRD will invest $4 million in the project and will provide a minimum of 70 percent of the iron ore used to feed the plant over 30 years.