Mitsui & Co. has reached a commercial agreement with miner Vale to buy up to 1 million mt of iron ore from the Brazilian producer.
Mitsui, which owns a 5.58 percent stake at Vale, said the deal is valid from January to December this year. Vale said in a document filing at Brazil’s securities exchange commission, CVM, that the contract value will depend on iron ore prices, volumes sold and currency exchange rates.
Vale said the deal is positive due to its low risk and because Mitsui will guarantee a provisional pre-payment.