China's Ningbo Zhoushan Port, Brazil's Vale to build joint company

China's mega-port operator Ningbo Zhoushan Port Co., Ltd. has signed a deal with Vale International S.A. to establish a joint venture in east China's Zhejiang Province, said the Chinese company.

According to the agreement, Ningbo Zhoushan Port Co., Ltd. and Vale International S.A., a subsidiary of Brazil's mining giant Vale S.A., are to hold a 50 percent stake each in the joint venture, which will be in charge of the construction and operation of the West III project at Shulanghu Port in Zhoushan.

The project has total multiyear investments of 4.3 billion yuan (624 million U.S. dollars) and includes a stockyard and two loading berths with an annual processing capacity of 20 million tonnes.

The construction of the project, which is expected to take up to three years, will start after gaining a construction permit.

Ningbo-Zhoushan Port has ranked first globally for the past 11 years in terms of cargo throughput, while Vale S.A. is one of the largest producers of iron ore and nickel in the world.