From Reuters:
The talks have since slowed down significantly and “Vale has expressed that they are less enthusiastic at the moment”, Fortescue Chief Executive Nev Power told Reuters on Thursday.
“Presumably they have higher priorities in the short term. Ultimately the need for it will be there and we think that interest from customers will bring it back,” he said on the sidelines of an industry conference.
An official from Vale said discussions about blending ore were ongoing, but added that it was a “very complex deal”.
“We are progressing, discussing. It’s not something that is easy to implement,” said Claudio Alves, global director of marketing and sales at Vale.
Watch the deal slip into oblivion as iron ore falls. It’s a fantasy tie-up built on the fantastic assumption of strong future prices. If prices are weak then why on earth would Vale seek to keep FMG’s highest cost tonnes in the market? That means Cloudbreak is back on the chopping block in the long run.
Meanwhile, Vale is blending its own ores onshore in China, from Platts:
Brazilian iron ore miner Vale, the world’s largest iron ore miner, plans to expand blending facilities for Brazilian Blend iron ore fines to eastern China’s Rizhao and Shulanghu ports, and southern China’s Beilun and Zhanjiang ports, and allow trades in yuan terms at the ports, the company’s executive manager for shipping and iron ore marketing Luiz Meriz said in a conference at Dalian Thursday.
“Our distribution centers in China are blending the Brazil blend with quality and stability, allowing quick delivery time, flexible lot sizes, and offering different options of logistics — trucks, vessels or trains,” he said.
He added that port sales also gave customers flexibility to take the material “just-in-time” from quayside.
A Vale term customer in central China said that Brazilian Blend fines had lower impurities like alumina and silica and were becoming increasingly popular among mills facing increasing environmental scrutiny. “When it comes to constituents in the grade and impurity content, Brazilian blend fines are found to be at par with Australian mainstream blends like the Pilbara Blend,” the customer said.
Makes a lot more sense.
