FMG signs MOUs with Chinese steel mills

FORTESCUE Metals Group (FMG) has signed eight Memoranda of Understanding (MOUs) with major public and private Chinese steel mills at the inaugural China International Import Expo.

The mills included Baowu Steel Group, the largest steel group in China and recipient of FMG’s first cargo of ore 10 years ago and its Echeng subsidiary; as well as Hebei Iron and Steel Group, China’s second largest steel group.

FMG also planned to sign MOUs with Rizhao Iron & Steel; Minmetals Yingkou Medium Plate Co; Lingyuan Iron and Steel, Baotou Steel (Group) Co; and Anyang Iron and Steel.

FMG chief executive Elizabeth Gaines said the MOUs reaffirmed its commitment to customers and significant market presence in China.

“As the lowest cost supplier of seaborne iron ore into China, Fortescue has enjoyed strong relationships with customers since our first shipment of iron ore a decade ago,” Ms Gaines said.

“As the One Belt, One Road initiative continues to grow, the openness and mutual understanding established by our bilateral trade relationships will be critical to its success.

“Australia’s significant strategic partnership with China is built on the importance of trade and is a fundamental pillar in our relationships across the Asian region.”