Major Chinese steelmaker Shougang Group has inked an iron ore supply agreement with Hong Kong-based investment company Honbridge Holdings Ltd.
According to the deal, Shougang Group will receive 10 million mt of iron ore fines annually from Brazilian miner Sul Americana de Metais S/A over a period of 15 years. The agreement also involves a prepayment by Shougang Group of $1.5 billion.
Last year, Honbridge Holdings acquired 100 percent of Sul Americana de Metais (SAM) from Brazil-based Votorantim Novos Negocios (VNN) for a price of $390 million.