Brazil's mining giant CVRD announced on Friday that it had signed a long-term contract with Germany's ThyssenKrupp Steel AG to supply iron-ore to its steel company.

Companhia Vale do Rio Doce (CVRD), the world's biggest iron-ore producer, will supply iron-ore and pellets to the German company through ThyssenKrupp CSA, a joint venture between ThyssenKrupp Steel AG and CVRD, it said.

The contract will generate profits of over 7 billion U.S. dollars to the company annually, within a duration of 15 years.

Under the contract, the Brazilian mining giant, through its subsidiary MBR (Mineracoes Brasileiras Reunidas), will provide 2.7 million tons of pellets and 5.9 million tons of iron-ore a year to CSA, according to a CVRD press statement.

MBR will be the sole supplier of iron-ore and pellets to CSA, the statement said.

CVRD, also the world's second largest producer of nickel, manganese and ferroalloys, enjoyed an estimated market value of more than 100 billion reals (46.5 billion U.S. dollars).

Source: Xinhua