MOL inks deal with Vale for VLOC newbuilds

Japan's Mitsui O.S.K. Lines Ltd. announced on November 26 that it had signed a long-term transport contract with Brazilian mining giant Vale International SA, a subsidiary of Vale S.A., for two very large ore carriers (VLOCs) on November 18. Two 300,000 DWT-class newbuild VLOCs, which will be constructed at Japan's Universal Shipbuilding Corporation and slated for completion in 2012 and 2013, will serve the Vale-China shuttle service, transporting iron ore for 25 years.

Long-term contracts with stable and large iron ore mining companies will help secure cash flow stability for MOL and allow the company to develop more stable portfolio strategies as it moves ahead.

Vale is the second largest metals and mining company and among the 30 largest publicly traded companies in the world. Vale is also the largest iron ore producer in the world with an expected production of 311 million tons in 2011 and the largest private sector company in Latin America.

MOL, as one of the world’s largest Cape-size bulker operators, already operates five 300,000-class VLOCs, including the 320,000 dwt Brasil Maru, says it will continue to take a proactive stance in VLOC operation to meet the growing demand of iron ore transport and optimize the use of large vessels. MOL operates 861 vessels and employs more than 9,200 people worldwide.