Venezuela Sends Iron Ore Shipment To China

On January 5, a ship carrying 160,000-tonnes of iron ore would set sail from Venezuela port to WISCO, smoothly implementing the long-term purchasing agreement at "China price" signed by WISCO and Venezuela Mining Group.

WISCO and Venezuela Mining Group signed an iron ore long-term purchasing agreement at a price lower than U.S.$6 per ton than the market price. The quality of the iron ore is superior with little impurity, and the iron ore grade is not lower than 64.41%. The expiration is seven years. WISCO can obtain 4mln tons of iron ore per year from Venezuela Mining Group.

It is reported that the total deposit of Venezuela iron ore reaches 14.657bln tons, among them, the proven deposit is 4.184bln tons. In 2009, iron ore production was 23mln tons.

As the world's largest iron ore importer, China's no saying right in iron ore price must be changed. As of this, since the second half of 2008, WISCO embarked on transferring the pattern of economic development, grasping the developing opportunity brought about by the global financial crisis, energetically implementing “stepping out of China” strategy, developing iron ore production bases in the overseas market by cooperation and investment, it signed iron ore developing and supplying contracts and cooperating agreements with the enterprises of Canada, Brazil, Australia and other countries.

Source: Alibaba

Wuhan To Source Iron Ore From Venezuela

Chinese leading steel maker WUHAN IRON & STEEL GROUP said on Monday that it had entered into a long-term iron ore contract with CORPORACION VENEZOLANA DE GUAYANA (CVG), the only iron ore producer in Venezuela. This is the first iron ore contract to be implemented at Chinese prices, signalling that China's iron ore purchase prices need not be restricted by the world's top three suppliers, BHP BILLITON COMPANHIA VALE DO RIO DOCE, and the RIO TINTO GROUP, said the Chinese steel maker.

Chinese steel makers and the top three suppliers have failed to reach a price agreement this year, as the China Iron and Steel Association, a semi-government body representing Chinese steel mills, insisted on a favorable price.

Under the contract, Wuhan Iron & Steel was given a pre-emptive right to an expanded ore supply once CVG completed its capacity expansion.

Source: Trading Markets

Venezuelan Iron Ore Mine Reopens

Venezuelan President Hugo Chavez reopened the country's biggest iron ore mine on Friday in a nationally-broadcast ceremony in Bolivar state, 850 kilometres (528 miles) southeast of Caracas.

China will contribute $70 million toward the cost of reactivating the Cerro Bolivar mine, which is to be operated with technical advice and cooperation from Swiss-based Commodities and Minerals Enterprise Ltd.

The mine is expected to be producing at a rate of 3 million tons of iron ore per annum by the end of 2010. The whole of the output will be exported to Chinese steel mills.


After inaugurating the reopened mine, President Chavez oversaw the signing of an agreement to pay a $120 million advance to the Brazilian firm, Andrade Gutierrez, for the construction of a new steel mill in Ciudad Piar that is expected to open by late 2011.