Vale has signed a 20-year contract of affreightment (COA) with South Korean ship-owner Pan Ocean.
Under the terms of the deal, Pan Ocean will transport some 32 million mt of the commodity from Brazil to China and Malaysia for the Brazilian miner, effective on Q4 2016.
The deal accounts for about 25 percent of Pan Ocean’s sales, the shipping company said. The $359 million COA contract is Vale’s third deal.
The Brazilian iron ore producer recently inked similar deals with China Merchants Energy Shipping (CMES) and China Cosco Shipping.