SYDNEY, April 13 (Reuters) - Fortescue Metals Group FMG.AX said it expects to start shipping iron ore to China for blending with ore from Brazil's Vale VALE5.SA in the second half of 2016.
The pair plan to eventually blend up to 100 million tonnes of their ores in China, producing a product preferred by local steel mills.
Fortescue, the world no. 4 producer of iron ore, earlier on Wednesday reported a 6 percent decline in production costs for the March quarter.