The agreement with Vale could reach some 20 billion reais ($3.70 billion).

Vale said the new proposal totals $26.09 billion.

The government has approved draft legislation that will ensure the security of mining licences and permits in the state, a major producer of iron ore.

China imported 102 million tonnes in May, marking a third straight month of arrivals of more than 100 million tonnes.

Iron ore supply has risen while demand has softened and showed little room for improvement, Sinosteel Futures said.

The list now identifies 34 minerals and metals deemed essential to the country’s economic or national security.

Pakistani Prime Minister visited Beijing in a bid to upgrade cooperation under the multi-billion dollar China-Pakistan Economic Corridor, a key part of Beijing's Belt and Road Initiative.