(Yicai Global) Dec. 17 -- Anyang Iron and Steel Group plans to buy the stake Brazilian mining giant Vale owns in an iron ore venture in China the pair have jointly operated for 10 years, saying the move will help the Chinese firm integrate resources and improve profitability.

Anyang Steel will pay CNY90 million (USD14.1 million) in cash for the 25 percent Vale Mauritius owns of Anyang Yu Vale Yongtong Pellet, the steelmaker said in a statement late yesterday.

The JV has an iron ore processing plant in the city of Anyang. With a total investment of CNY625 million (USD98.1 million), it has annual output of 1.2 million tons of iron ore pellets. The plant processes powdery ore imported by Vale into massive products with good air permeability for Anyang Steel’s No. 3 blast furnace, also located in Anyang.

The JV had net assets of CNY477 million as of Sept. 30, according to the statement, and had nine-month net profit of CNY34.4 million on revenue of CNY1.1 billion (USD172.6 million).

Shares of Anyang Steel [SHA: 600569] closed up 1.3 percent at CNY3.21 (50 US cents) today, after opening up 5.4 percent.

Editor: Futura Costaglione