Australian iron ore miner Fortescue Metals Group has announced that it has signed an memorandum of understanding (MOU) with Brazil-based miner Vale to pursue long term opportunities to create additional value for customers in the Chinese steel industry and enhance the competitiveness of their operations.
The agreement provides a framework for potential investment by Vale in Fortescue through a minority acquisition of shares on market and/or investment in current or future mining assets. The agreement contemplates an acquisition of its listed shares of between five percent and 15 percent, as agreed between the parties. The agreement also proposes the formation of one or more joint ventures for the blending of selected volumes of iron ore from both companies.