By Joanne Chiu
China's biggest shipping firms have signed a long-term iron-ore
shipping contract with Brazilian mining giant Vale SA (VALE), the
latest in a string of deals announced during Chinese Premier Li
Keqiang's state-visit to Brazil.
Mr. Li kicked off a tour of South America on Tuesday by
unveiling billions of dollars in financing and trade agreements for
Brazil's biggest companies, part of a broader effort to deepen ties
with the region despite an economic slowdown.
China Ore Shipping Pte.--a joint venture between China Cosco
Holdings Co. (1919.HK) and China Shipping Development Co.
(1138.HK)--has signed a 20-year pact with Vale, under which Vale
will charter ships owned by China Ore Shipping to transport the
steel-making raw material to the world's second-largest
economy.
The pact comes after the Hong Kong- and Shanghai-listed flagship
of China Ocean Shipping (Group) Co. said Wednesday that China Ore
Shipping, which is 51%-owned by China Cosco, has agreed to buy four
very large ore carriers from Vale for US$445 million. China
Shipping Development holds a 49% stake in China Ore Shipping.
The contract includes an option to extend tenure by five years,
the two Chinese shipping companies said.
Trade in both China Cosco and China Shipping Development shares
will resume in Hong Kong Thursday, after they were suspended
Wednesday.
Write to Joanne Chiu at joanne.chiu@wsj.com
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