Australian iron ore miner Fortescue Metals Group has announced that it has signed 12 memoranda of understanding (MoUs) with major Chinese steel mills, procurement partners and financial institutions, with values cumulatively in the range of $3-4 billion.
The company signed MoUs with Chinese steelmaker Hunan Valin Steel for the supply of iron ore and procurement opportunities, as well as with Bank of China for strategic cooperation. Fortescue has also signed an additional nine MOUs with Chinese steel mills and procurement partners, including Baotou Iron & Steel Co. Ltd., Guangxi Shenglong Metallurgical Co. Ltd., Rizhao Iron and Steel Co., Ltd., and Shanxi Iron and Steel Group.
“Since the company’s inception, Fortescue has built enduring relationships with our stakeholders in China. Our engagement extends beyond iron ore supply to long-standing customer relations, procurement and financing arrangements, as well as academic, policy and social linkages. These strong trade relationships provide economic stability as we work together to build new opportunities for the future. Further to the MOU for the ongoing supply of iron ore, we have signed a Strategic Cooperative Agreement for Fabrication Supply with Valin Group which builds on our track record of partnering with Chinese manufacturers for the supply of equipment and infrastructure,” Elizabeth Gaines, CEO of Fortescue, said.