Brazil and China have announced a $50 billion fund to develop infrastructure projects in the South American country, a Brazil’s government news agency said this week. Vale is one of the companies to benefit from the deal, which has 35 agreements.
According to news reports, the agreement between the two BRIC countries aims to strengthen Brazil’s aging infrastructure, which plays an important role in the shipment and logistics of metals and raw materials such as iron ore.
“China will be a long-term buyer of Brazilian minerals … and also of farm products,” Chinese premier, Li Keqiang, said during a speech in Brasilia when announcing the deal.
According to the Brazilian government, the cooperation agreement is valid until 2021. The Chinese premier said the trade between the two economies is expected to reach $100 billion.
The construction of a railroad connecting Brazil to the Pacific Ocean is one of the 35-signed agreements. For this specific project, the two nations are implementing a feasibility study to develop the project, which could facilitate exports of commodities to China.