RIO DE JANEIRO--Brazilian mining giant Vale SA (VALE) said
Friday it has signed a memorandum of understanding with South
Korea's export credit agency for up to $2 billion in financing for
its projects.
With the agreement, Korea Eximbank "demonstrates its intention
to consider" the financial support to Vale, the Brazilian company
said.
The deal comes at a time when depressed prices for iron ore and
other commodities are weighing on Vale's cash flows. That is
forcing the company to sell assets and raise financing to carry out
a nearly $17 billion expansion of its Carajas mining complex in
northern Brazil.
South Korea's POSCO is one of the world's top steel companies
and a partner of Vale in Companhia Siderurgica do Pecem, a major
steelmaking project in northeast Brazil.
"The objective of the memorandum is to establish general
principles for [financial] cooperation, helping to promote the
relationship between Vale and Korean companies," Vale said in a
press release.
Write to Paul Kiernan at paul.kiernan@wsj.com
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