CIC in talks with Vale for streaming iron ore deal

Monday, 22 August 2016 23:23:11 (GMT+3)   |   Sao Paulo
       

Vale is in talks with China Investment Corp (CIC) to sell its future iron ore production, a media report said.

As previously reported by SteelOrbis, Vale is expected to raise up to $10 billion if it reaches a streaming iron ore deal, which could represent up to 3 percent of the company’s future output for the commodity.

The company denied the information on August 10, but a new report by Bloomberg said CIC was in talks with the Brazilian miner.

The media report explained the sovereign fund consortium is negotiating the purchase of a portion of Vale’s iron ore output for as long as 30 years. Despite the on-going conversations, no agreements have been reached, and the talks may not result in a deal, according to unnamed sources.

If a deal is reached, Vale would receive immediate cash, while remaining in charge of valuable assets, the media report said.

Vale has reached a number of deals with Chinese companies this year. The world’s top iron ore producer completed on July the sale of vessels to ICBC International, in addition to having received Valemax orders from Chinese shipping majors, including Cosco Group and China Merchants Group.

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