Brazilian group Vale has reached an agreement with the China Ocean Shipping Co (Cosco) to transport iron ore, which will help overcome a two-year ban on its very large ore carriers – known as Valemax ships – entering Chinese ports, the mining group said in a statement.
Vale also said that under the agreement the ownership of four ore ships each weighing 400,000 tons each would be transferred to Cosco, after which it will sign a lease contract for the same vessels valid for a period of 25 years.
According to the international press, this agreement is another step towards Vale disposing of its fleet of ships in order to focus further on mining and strengthen the group’s accounts.
The inability to moor its Valemax ships at Chinese ports has prevented Vale from reducing transportation costs and competing on an equal footing with rival groups such as BHP Billiton and Rio Tinto that put iron ore mined in Australia on the Chinese market, which has a shorter route to travel than ore from Brazil. (Macauhub / EN / CN)