Brazilian miner and iron ore producer Vale has reached an agreement with Hidrovias do Brasil to transport up to 3.2 million mt of iron ore in 2021 using a waterway, Hidrovias do Brasil said in a document filing.
According to Hidrovias do Brasil, it will use eight vessels to transport Vale’s product using the Paraguay-Parana waterway. The deal with Vale is reportedly valid for a 25-year period, falling under a take-or-pay contract agreement signed in July 2012.
As compared to what Hidrovias has been transporting this year, it will need six more vessels in 2021, as opposed to the two it is currently use to move Vale’s product.