Brazilian miner Vale has announced that it has signed a framework agreement for strategic cooperation in iron ore shipping with China Ocean Shipping Company (COSCO), the largest dry bulk carrier in China and one of the largest dry bulk shipping operators worldwide.
According to the agreement, four existing very large ore carriers of 400,000 tons deadweight owned and currently operated by Vale will be transferred to COSCO and chartered by Vale on a long-term basis for 25 years. The transaction value will be released after its closing.
In addition, Vale and COSCO are planning to enter into a similar long-term contract of affreightment which will be serviced by 10 very large ore carriers of similar deadweight to be built by COSCO for the transportation Vale's iron ore production.