Vale, Cosco sign cooperation agreement on VLOCs

Vale and the China Ocean Shipping Company (Cosco), the largest dry bulk carrier in China and one of the largest dry bulk shipping operators worldwide, signed a framework agreement for strategic cooperation in iron ore shipping in Beijing. The agreement was signed by Murilo Ferreira, CEO of Vale, and Ye Weilong, chairperson of Cosco Bulk, and witnessed by Ma Zehua, chairperson of the Board of Cosco Group, and Li Yunpeng, director of board and president of Cosco Group.

The agreement brings together a strategic cooperation between Vale and Cosco. Four existing very large ore carriers (VLOCs) of 400,000 tons deadweight owned and currently operated by Vale will be transferred to Cosco and chartered by Vale on a long-term basis for 25 years. The transaction value will be released after its closing. In addition, Vale and Cosco shall enter into a similar long-term contract of affreightment, which would be serviced by ten VLOCs of similar deadweight to be built by Cosco for the transportation of iron ore from Brazil.