On March 8th, messages from foreign media said that FMG from Australia has signed the non-binding memorandum of cooperation with Vale, the world’s biggest iron mine supplier in Brazil.
The memorandum has established the principle of long-term cooperation between FMG and Vale and also provided added values and improved production competitiveness for Chinese steel customers. It planned to build up one or several cooperative enterprises and select two of them to mix the minerals. This mixed minerals will satisfy customers’ long-term demands and improve the efficiency of the steel supply chain. Also, when Vale invest for FMG or purchase minority stakes in acquisition or invest for present and future mines, the memorandum can offer the framework.
Neville Power, the president of FMG, said:” this memorandum will make us work together to provide attractive and competitive new mixed minerals for China and stable values for customers.” However, it still need to be approved by the broads of the two company and related departments before it has binding effect.