Vale mulling over monetising future output: sources

Sao Paulo

BRAZIL'S Vale SA is considering raising as much as US$10 billion from the sale of up to 3 per cent of future iron ore output to undisclosed Chinese companies, two sources with direct knowledge of the matter said.

Under terms of the deal, Vale, the world's biggest iron ore producer, would receive streaming financing from the companies, said the sources, who asked to remain unidentified because the discussions are still private. The idea is to sell part of the company's future output over a 30-year period, the sources said. The Rio de Janeiro-based company has not yet reached a decision to complete the iron ore streaming financing deal, the sources said.