Fortescue Metals Group (FMG) is joining with Brazilian firm Vale to pursue iron ore joint ventures.

The non-binding memorandum of understanding (MoU) between the two companies puts forth plans for joint ventures that will see the blending of iron ore from both companies to sell in the Chinese market.

The firms say they want to blend their products to produce a mix suited specifically to China’s steel-making customers.

Fortescue says the deal will include a new framework that could allow Vale to buy Fortescue shares and acquire a minority stake, or invest deeper to gain partial ownership of some of Fortescue's assets.

“The memorandum of understanding will allow us to work together to deliver long term value to our customers, through the efficient supply of an attractive and competitive new iron ore blend in China,” says FMG chief Nev Power.

But FMG is keen to stress that the MoU is non-binding and will require agreement to various contracts, as well as board and relevant regulatory approvals.

Brazilian firm Vale is the world’s largest iron ore producer.

It already operates a number of joint ventures with Australian firms, most notably the ill-fated Samarco operation with BHP Billiton.