CVRD makes deal to produce coke and coal in China

CVRD makes deal to produce coke and coal in China

According to the statement released from Brazil's iron ore producer Companhia Vale do Rio Doce (CVRD), the company has recently signed an agreement with Yankuang Group to produce coke in China. Under the scope of the agreement, 2 million tons of coke will be produced. 25% of the total production will be exported to Brazil. Moreover, CVRD is planning to be partner with Yankuang to install new coking coal mines in Zhaolou, Shandong province. The mine, the production of which will be 3 million tons will be operational in 2007. CVRD also signed an agreement with Shanghai Baosteel Group Corp and Yongcheng Coal & Electricity Group to produce coal in China. Yongcheng has three coal mines with a production capacity of 8 million tons. Under the agreement, CVRD will have stake in the mines equal to Yongcheng's. The deals are expected to consolidate relations between Brazil and China.