Corus announces that it has signed a long-term contract with CVRD of Brazil for the supply of iron ore.
Through the new deal, CVRD will become Corus’ largest iron ore supplier. The contract is for 10 years, with either party having the right to terminate the contract after 5 years. Volumes will build up to around 10 million tonnes a year over the next five years from the current 5 million tonnes. The contract replaces the existing 3-year contract and represents a strategic decision by Corus to increase value through long-term supply relationships, including product development, supply chain simplification, and process improvement.
At the signing of the contract at the Carajas mine in Northern Brazil, Philippe Varin, Chief Executive of Corus, said: 'Corus and CVRD have a successful relationship based on working closely together for many years. This deal will enhance Corus’ security of supply of high quality iron ore for the long-term.'
Roger Agnelli, CEO of CVRD said: 'The signature of a new long term contract with Corus is a very important step for CVRD which marks a new phase in the longstanding partnership between Corus and CVRD'.