China Valin Signs Iron Ore Deal With Fortescue Metals -Xinhua

BEIJING --Australia's third-largest iron ore supplier, Fortescue Metals Group Ltd. (FMG.AU), has inked a deal with Chinese steelmaker Hunan Valin Steel Co. (000932.SZ) to develop iron ore mines and to process ores in Changsha, Hunan province, Xinhua News Agency reported Thursday.

Xinhua didn't specify the expected volume or the value of the deal.

Valin, which has limited iron ore supplies, hopes to get stable and competitively priced ores out of the deal, the state-run news agency said.

Fortescue Chief Executive Officer Andrew Forrest was quoted by SinoCast China Business Daily News last week as saying the deal would allow Valin to get a stable iron ore supply over the long term, and that Fortescue would get strong support in developing low-tenor iron mines from a couple of higher education institutions in Hunan province - he named Central South University.

The Xinhua report Thursday said Hunan's provincial government supported the deal.

-By Chuin-Wei Yap, Dow Jones Newswires; 8610 6588 5848; chuin-wei.yap@dowjones.com