Vale signs iron ore shipping deal with Cosco

[RIO DE JANEIRO] Vale SA reached a deal with China Ocean Shipping Co (Cosco) for transporting iron ore, a move that could help the Brazilian miner resolve a costly two-year ban on docking its mega-ships at Chinese ports.

Vale said in a statement that it would transfer ownership of four very large iron ore carriers of 400,000 deadweight tonnes to Cosco. It would then lease them back from Cosco, the state-owned parent of top Chinese dry bulk shipper China Cosco, for 25 years.

The deal is part of a continuing effort by Vale to move away from owning its own vessels so it can focus on mining and shore up its balance sheet.