Brazilian iron ore miner Vale has signed a contract with Japan’s Mitsui to sell 750,000mt of iron ore to the latter this year.
Mitsui, which has a 5.42pc stake in Vale, has a credit of BRL375mn ($64.4mn), which will be used towards buying the iron ore, according to media reports.
Under the agreement, which will be valid from February-December 2021, the total value of the contract will depend on iron ore prices, the Brazilian Real and US dollar currency exchange rate, and the volume sold, per reports.
Vale expects its iron ore production to reach 350mn mt by the end of 2021 and reported a marginal drop of 0.5pc in output last year at 300.4mn mt compared to 2019.
Brazil’s iron ore and concentrates shipments rose by 10.8pc to 24mn mt in February, from 21.6mn mt exported in the same month the prior year. The average price for a tonne of iron ore increased to $119.8/mt in February, from $68.2/mt in the same month the prior year, according to the latest figures from the country’s ministry of economy.