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Vale has secured a Real 6.2 billion ($2.7 billion) financing contract from
Brazil's development bank BNDES to implement its massive Carajas iron ore
project, the company said Tuesday.
Vale, in a statement, said the funding will help finance the Carajas Serra Sul
90 million mt/year S11D project and CLN S11D plan.
"The financing term is 10 years, and the funds will be disbursed within three
years according to the project's plans," Vale said.
The S11D project includes development of a mine and construction of a processing
plant located in the southern range of Carajas, in the Brazilian state of Para.
The CLN S11D project includes railway and port investment, increasing the
estimated nominal logistics capacity of the Caraj's Railway and of Ponta da
Madeira maritime terminal to about 230 million mt/year.
Vale on Monday announced closing of a deal in which it transferred 20% of the
total capital of logistics company VLI to Mitsui & Co for Real 1.5 billion ($671
million).
Another 15.9% of VLI was transferred to the investment fund Fundo de Garantia do
Tempo de Servico-FGTS, managed by the Brazilian bank Caixa Economica Federal,
for Real 1.2 billion ($537 million). That transaction was announced last
September.
"The [total] cash proceeds from the sale to FI-FGTS and Real 800 million ($357
million) of the proceeds from the sale to Mitsui will consist of a cash
contribution to VLI in consideration for issuing new shares to Mitsui and
FI-FGTS," Vale said.
"The cash contribution to VLI will be used to finance part of VLI's investment
plan," the miner said, adding the remaining transaction revenue, Real 709
million ($317 million), was paid directly to Vale by Mitsui.
Vale has also entered into an agreement with an investment fund managed by
Brookfield Asset Management to sell 26.5% of the company's stake in VLI for Real
2 billion ($894 million) "to be paid directly to Vale, which is still subject to
conditions," the company added.
Upon completion of the transaction, Vale will hold 37.6% of VLI's total share
capital.
Source: Platts
Related links:
Vale Sees Iron Ore Price
Holding At $100-125
(2014-04-03)
Vale Develops Green Iron Ore To
Reduce China Emissions
(2014-03-03)
Vale Vows Spending Austerity as
Metals Price Outlook Improves
(2014-02-28)
Vale Spares Most Non-Chinese
Mills From Carajas Iron Ore Fines Premium for Now
(2014-01-29)
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