Brazilian iron ore company Vale has signed an agreement to sell four very large ore carriers (VLOCs) to China Merchants Energy Shipping Co (CMES), the company said Tuesday.
According to Vale, the deal extends a former agreement the two companies had, which was defined by the company as a “strategic long-term cooperation … in the maritime transport of iron ore," it said, adding the first agreement was signed in September 2014.
Vale said the details of the contract are yet subject of discussion between the two companies, but it expects to complete the deal “in the next months.”
Vale also announced it has completed the sale of four other VLOCs to China’s Cosco for $445 million. The ships should be delivered by Vale by June this year.
Vale’s VLOCs have the capacity to transport 400,000 mt of iron ore.