Vale signs 27-year iron ore freight deal with China's ICBCL

Brazilian mining giant Vale and Chinese ship-owner ICBCL have signed a long-term affreightment contract (COA) for strategic cooperation in the area of iron ore shipping.

Under the deal, ICBCL will transport about 16Mt/y of iron ore for Vale from 1H18. The contract will be in force until the end of the 27th year from the start date.

Vale has this year signed similar contracts with China's Cosco and CMES, and South Korea's Pan Ocean.

"These contracts of affreightment with ICBCL are another great example of meaningful, long-term partnerships that have been struck between Vale and China," the miner's global director for iron ore, marketing and sales, Claudio Alves, said in a release.

Last month, Chinese shipping companies, including Cosco, reportedly ordered a total of 30 very large ore carriers, or VLOCs, in a US$2.55bn deal. The move by the firms is part of what appears to be a bid to increase imports of iron ore from Brazil.

The 400,000t vessels, also known as Valemaxes, were conceived by Vale as part of its whole logistics solution, which includes vessels, floating transfer stations and distribution centers.

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