China Iron and Steel Association (CISA) secretary general Shan Shanghua met separately with Brazilian miner Vale's executive director for corporate affairs Tito Martins and Australian miner Fortescue Metals Group's (FMG) executive director Russell Scrimshaw on June 16 and June 18 respectively to exchange ideas on cooperation on the issue of iron ore supplies.
Industry insiders think that the CISA may be trying to signal to the market that China will boost its cooperation with FMG and will try to make it the main iron ore sourcing partner for Chinese mills. Hunan-based Valin Group has already become the second largest shareholder of this Australian miner.
FMG is still seeking to raise funds for the expansion of its iron ore business expansion in the Pibara region of Western Australia. The miner plans to produce 38 million mt of iron ore in 2009 and aims to raise its annual production to 120 million mt in the longer term.