Brazilian miner Vale SA says it means to expand its Shulanghu iron ore terminal in the eastern Chinese port of Ningbo-Zhoushan, having struck a deal to that effect with Ningbo Zhoushan Port Co. Ltd.

Vale announced in writing that its joint venture with the port operator will build, own and operate an extension comprising a stockyard and loading berths which can handle 20 million tonnes of ore a year, doubling the capacity of the terminal and so reducing Vale shipping and distribution costs.

The partners will pay about 4.3 billion yuan (about US$637.1 million) for the land for the extension, Vale says.

The extension should take up to three years to build, according to the Vale announcement.