Brazil’s mining giant Vale SA will increase its iron ore production by 30 percent, in particular to provide China with high-quality minerals, Chinese state-run newspaper China Daily reported.

Murilo Ferreira, president and chief executive of Vale, said this week in Beijing that, in 2015 and 2016, the company would raise its annual production of iron ore to 450 million metric tonnes from 340 million.

“The Chinese government has come out with strict environmental protection laws, which require steel mills to reduce emissions,” he was quoted as saying. “Vale is happy to provide iron ore products with high iron content and low impurity, thereby helping the Chinese government fight pollution”, he added.

Despite its sluggish economy in recent times, China is still the biggest steel-producing country in the world, and requires large volumes of iron ore for the industry.

Mr Ferreira said it is important to maintain good ties with Chinese buyers to compete with two Australian mining firms that sell iron ores in the world’s second-largest economy.

When Chinese Premier Li Keqiang visited Brazil last month, Vale signed a memorandum of understanding with the Industrial and Commercial Bank of China, which will provide loans of up to US$4 billion to Vale.