Brazil Vale Orders 12 Ships from China for $1.6bn

Brazilian iron ore miner Vale has commissioned 12 very large ore carriers from Chinese shipbuilder Rongsheng Shipbuilding and Heavy Industry for $1.6bn.

Each of the ore carriers will have a capacity of 400,000dwt.

The capital expenditure is in addition to Vale's previously announced global investment programme of $59bn for 2008–2012, Vale said in an announcement on Monday.

Vale, also known as Companhia Vale do Rio Doce, or CVRD, has proposed larger ships to ply to Brazil–China route, reducing shipping costs and making its ore more competitive compared with nearer Australian or Indian ore.

Reporting by Alfred Cang, Reuters