Vale Spends Big on Iron Ore Shipping

The largest iron ore producer in the world Vale SA has borrowed $1.23 billion from banks in China for buying ships from a Chinese shipyard.

The loan is financed by the Export Import Bank of China and the Bank of China Ltd for a period of 13 years.

12 ships will be constructed by the Rongsheng Shipyard. These ships will then be used to transport ore from Brazil to China. The ships will have the ability to transport 400,000 metric tons of iron ore each passage.

The loan will help cover about 80% of the cost of the full project. The exact terms of the loan were not disclosed. The declining borrowing costs and rising demand for corporate debt have allowed Vale and several other Brazilian companies to raise more than $4 billion in the global capital market this week alone.

Vale is seeking to boost the transportation of iron ore through its own ships to Asia as the Asian demand for steel making material increases. Vale is able to sell half of its production to Asian nations as of now.

Joel Scanlon

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Vale. (2019, March 19). Vale Spends Big on Iron Ore Shipping. AZoMining. Retrieved on May 19, 2024 from https://www.azomining.com/News.aspx?newsID=322.

  • MLA

    Vale. "Vale Spends Big on Iron Ore Shipping". AZoMining. 19 May 2024. <https://www.azomining.com/News.aspx?newsID=322>.

  • Chicago

    Vale. "Vale Spends Big on Iron Ore Shipping". AZoMining. https://www.azomining.com/News.aspx?newsID=322. (accessed May 19, 2024).

  • Harvard

    Vale. 2019. Vale Spends Big on Iron Ore Shipping. AZoMining, viewed 19 May 2024, https://www.azomining.com/News.aspx?newsID=322.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type
Submit

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.