Vale said the Shulanghu grinding hub had a nominal capacity of 3 million tonnes per annum and would produce high-grade fines for pellet production, contributing to "China's greener future".

Its first product would be GF88, which Vale's ferrous minerals executive director Marcello Spinelli said was "a truly ‘green' mineral product".

"It enjoys high iron content, low impurities and low loss-on-ignition characteristics," Spinelli said as he virtually attended the inauguration ceremony yesterday.

"It also deploys a unique, innovative and environmental-friendly production process, which has no need for heating or water and generates no tailings."

Vale said GF88 would use high-grade Carajas fines and support steel-making clients with the challenge of reducing their carbon footprint, part of Vale's scope three emissions.

The hub resulted from a partnership with the Ningbo Zhoushan Port Group.

Vale, which is still reeling from the aftermath of the Brumadinho tailings dam disaster in 2019, has recently launched other green initiatives including an electric locomotive trial.

The iron ore price has soared in recent months due to supply weakness from Brazil and recovering demand in China, although analysts have tipped the rally could peter out.