Vale starts construction of Zhongzhai Pre-Blending Project in China

About Vale

7/20/2022

Vale starts construction of Zhongzhai Pre-Blending Project in China

Vale started construction of the Zhongzhai Pre-blending Project, a partnership with Jiangsu Shagang Group Co., Ltd. (“Shagang”) and Ningbo Zhoushan Port Company Limited (“Ningbo Zhoushan Port”).

The project, which will be built by Ningbo Zhoushan Port, is expected to start operations in the second semester of 2023. The goal is to develop silo-blending facilities for up to 8 different ores with a capacity of 15 Mtpy at the Zhongzhai Ore Terminal in Zhejiang Province, China.

Blended ores will be supplied exclusively to Shagang after the project is completed.

Vale will be responsible for supplying portion of the blended cargoes, with high quality products such as BRBF, and providing technical assistance services in blending activities.

The Zhongzhai Ore Terminal has an unloading berth of 300,000 tons that can receive Guaibamax ships.

What is blending?

The word comes from the English verb blend, which means to mix. In the extraction of ores, the blending process refers to the mixing of substances to create uniform products.

The innovative pre-blending service involves the use of silos for the simultaneous blending of various iron ore products at the port, a process normally carried out in steel mills, before the sintering stage.

Pre-blending is a way to increase our company's extended supply chain services, delivering value to our customers through multiple benefits, such as:

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Improvement in the quality of the iron ore mix; 

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Logistical efficiency;

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Reduction of raw material inventories in steel mills.

Project start

The project's opening ceremony was held this week and was attended by Rogerio Nogueira, Vale's Iron Ore Marketing Director, and Tracy Xie, President of Vale China.

“The Zhongzhai Pre-Blending Project aligns with our strategy of delivering value to customers through our extended supply chain. Both blending and pre-blending are the result of innovation, one of the levers of Vale's purpose. As a result, we offer better products and services, get closer to our customers and help them to optimize their business”, highlighted Rogerio Nogueira.

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About Shagang

Headquartered in Zhangjiagang City, Jiangsu Province, Shagang is the largest private steel mill in China and the 5th largest steel mill in the world, with a crude steel production of 44 Mt in 2021. Shagang has been on the Fortune Global 500 list for 13 years in a row and ranked 308th in 2021.

About Ningbo Zhoushan Port

Ningbo Zhoushan Port has been ranked the world's largest port for 13 consecutive years in terms of total load handling. The space operates in the loading and unloading of containers, iron ore, crude oil, coal, liquefied oil, grains and other cargo. It has two 400,000-ton berths that can receive Valemax ships.

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Vale starts construction of Zhongzhai Pre-Blending Project in China