Fortescue, Vale JV plans could fall over

 Fortescue Metals Group said today its proposed joint venture with larger Brazilian miner Vale, for blending their iron ore at key Chinese ports, could fall over.

"Negotiations are continuing between the parties on an amicable and commercial basis, however, it is looking less likely that any transaction will be completed," the Perth-based miner said in a brief statement.

"Fortescue's relationship with Vale remains strong while discussions are continuing more slowly than originally anticipated."

Fortescue chief executive Nev Power told The Australian on Friday that low shipping rates had levelled the playing field between exporters in Brazil and Australia, the world’s two major iron-ore production hubs.

He also said Vale had success in blending its own ores. 

The two companies announced in March they were in talks to form a joint venture for blending their iron ore, which could help them match the benchmark quality in the world's largest iron ore market, and help take share away from rivals BHP Billiton and Rio Tinto.