By Paul Kiernan
RIO DE JANEIRO--Brazilian mining giant Vale SA (VALE) signed a
number of deals with Chinese banks and shipping companies on
Tuesday during an official visit by the Asian country's prime
minister.
In the largest deal, Vale signed a memorandum of understanding
with the Industrial and Commercial Bank of China, or ICBC, for up
to $4 billion in syndicated loans, bilateral loans, export credit,
trade finance and other potential financing arrangements.
Vale and shipping heavyweights China Ocean Shipping Co., or
Cosco, and China Merchants Group also signed two memorandums of
understanding worth $1.2 billion each with the Export-Import Bank
of China. Under those agreements, the bank "will consider providing
a loan facility...[for] the two shipping companies' provision of
iron-ore shipping services to Vale."
Also on Tuesday, Vale closed a previously announced sale of four
so-called Valemax ships--each capable of hauling 400,000 tons of
iron ore--to Cosco for $445 million.
The Brazilian company reached a new agreement to sell four more
Valemax vessels to China Merchants Energy Shipping Co. Ltd.
Vale is the world's largest iron-ore producer, and China is the
biggest consumer and Vale's top customer.
Write to Paul Kiernan at paul.kiernan@wsj.com
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