Stausholm said the supply chain for China's green transition is a whole new business opportunity for multinational corporations like Rio Tinto.

Both pellet premiums are based on Fastmarkets’ 65% Fe Brazil-origin iron ore fines CFR Qingdao index.

Serra da Serpentina has an estimated resource of 4.3bn t. Minas Rio's pellet feed ore production was 24mn t in 2023, up by 12pc from a year earlier.

Swedish iron ore producer LKAB reopened its disrupted railway line to traffic late yesterday at reduced speed and reduced load, a company source said.

"The development that Vale has achieved is inseparable from China, and our future development will also need China," Biscassi noted.

China has stepped up investment in mineral resources exploration to bolster reserves and production, according to a bulletin released recently by the Ministry of Natural Resources.

UK-South African mining firm Anglo American will integrate the Serra da Serpentina iron ore resource, owned by Brazilian producer Vale, into its nearby Minas Rio operations in Brazil.

Vale will receive its pro rata share of Minas Rio production with completion of the deal. It will also have an option to acquire an additional 15pc stake in the enlarged Minas Rio for cash.