The operator of the eastern Chinese port of Ningbo-Zhoushan has agreed to process high-grade iron ore shipped there by Brazilian miner Vale SA, Reuters reports.

The news agency quotes a written statement issued by Ningbo Zhoushan Port Co. Ltd as saying it would build facilities at the Shulanghu ore transfer terminal for grinding, processing, storing and loading the ore.

The report quotes Vale as saying in September that it would start supplying China with high-grade iron ore in the first quarter of next year.

Demand for purer iron ore such as that mined by Vale is set to grow in China next year because of rules there intended to curb pollution, Reuters says.