Vale agrees to sell 10 iron ore freighters to Polaris Shipping
September 3, 2012, 12:13 pm TWN
RIO DE JANEIRO -- Brazil's mining giant Vale has agreed to sell 10 iron ore freighters for US$600 million to Turkish-based firm Polaris Shipping.
The Brazilian company, the world's biggest iron ore producer, said Friday that the transaction would improve cash flow while still maintaining its maritime ore shipping capacity.
"In addition to unlocking capital, the transaction preserves Vale's capacity of maritime transportation of iron ore, since the vessels will be available but without the ownership and operational risks," Vale said in a statement.
"This transaction is part of our continuous effort to optimize the asset portfolio, improving capital allocation and further strengthening of the balance sheet."