BEIJING: Brazil’s mining giant Vale, the world’s leading iron ore producer, signed memorandums of understanding (MoUs) with the Industrial and Commercial Bank of China (ICBC), the Export-Import Bank of China (China EximBank) and two leading Chinese shipping firms.
According to Vale, the deal with ICBC is for cooperation on global financing arrangements.
Under the terms of the memorandum, ICBC will provide Vale with up to $4 billion in “syndicated loans, bilateral loans, export credit, trade finance, among other potential financing arrangements and services.”
The document was signed by Murilo Ferreira, president and CEO of Vale, and Yi Huiman, president of the ICBC, during Chinese Premier Li Keqiang’s official visit to Brazil. It takes effect immediately for a three-year period.
In addition, Vale signed two three-party MoUs for potential financing and loans with China EximBank and shipping giants China Ocean Shipping Company (Cosco) and China Merchants Group.
Vale said both memorandums call for financing cooperation on iron ore shipping and “define the basis for future cooperation between Vale and its Chinese partners.”
“According to each memorandum, China EximBank will consider providing a loan of up to $1.2 billion to both Cosco and China Merchants respectively to facilitate the two shipping companies’ provision of iron ore shipping services to Vale,” the mining company said.
Brazil’s President Dilma Rousseff and Premier Li Keqiang presided over the signing of the agreements, part of many business deals struck between Brazilian and Chinese companies during Li’s visit.
Rousseff and the Chinese premier also announced the Joint Action Plan for the 2015-2021 period, which is expected to expand Brazil-China ties.
China is Brazil’s leading trade partner, with their total trade volume amounting to nearly $87 billion in 2014.
