China seeks tie-up with Vale to tranship ore

[BRASILIA] China is interested in setting up a partnership with Brazilian mining major Vale to move iron ore from its giant vessels on to smaller ones, as a ban on the big ships docking at Chinese ports continues, its ambassador to Brazil said on Monday.

Vale's mega ships, capable of carrying 400,000 tonnes of iron ore and known as the Valemax, are not permitted to dock at Chinese ports because of their size. This has frustrated the miner's attempts to reduce freight costs in order to compete with Australian-based rivals such as BHP Billiton and Rio Tinto, located closer to China.

Chinese shipowners have strongly opposed access for Vale's mega ships amid concerns that they could worsen a shipping glut and steal market share. "Our transport department has every interest in discussing and resolving this matter, including options such as setting up a partnership to tranship the iron ore and thus work together to lower freight costs," ambassador Li Jinzhang told foreign reporters at a conference in Brasilia.