By Wayne Ma
Brazilian mining giant Vale S.A. (VALE) said Friday it signed a
deal with state-owned China Ocean Shipping (Group) Co. to cooperate
on iron-ore shipping.
Vale said it would transfer four existing very large ore
carriers, each with a deadweight of 400,000 metric tons, to Cosco
Group, the parent of listed shipping firm Cosco Holdings Ltd.
(1919.HK). Vale will charter, or lease, the ships for 25 years.
These vessels, known in the industry as Valemax ships, are the
biggest dry bulk ships ever built.
Vale said it will disclose the value of the transaction after
the deal closes. Vale also said it signed a long-term contract with
Cosco Group to use 10 very large ore carriers, built by Cosco, to
ship iron ore from Brazil.
Write to Wayne Ma at wayne.ma@wsj.com
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