VALE3 Vale SA

RIO DE JANEIRO--Brazilian mining major Vale SA said Tuesday it has secured a 6.2 billion real ($2.8 billion) financing package from state development bank BNDES for its massive iron-ore project in the Carajas region of the Amazon jungle.

Vale should receive the funds within three years and will have 10 years to pay them back. Additional terms of financing weren't disclosed. The new contract comes in addition to some BRL12 billion in credit lines and financing packages that Vale already has with BNDES, the company said.

The world's largest producer of iron ore plans to invest $8.09 billion opening a new mining block at Carajas and another $11.58 billion in logistics to expand its production capacity in the region by 90 million metric tons through 2018. Vale last year churned out 311 million tons of iron ore across Brazil.

Write to Paul Kiernan at paul.kiernan@dowjones.com

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