New York: Vale SA, the world’s largest iron- ore producer, agreed to sell 10 vessels for $600 million and lease them back from South Korea’s Polaris Shipping Co as it seeks to raise cash amid declining commodity prices.
The ore carriers with a capacity of about 300,000 deadweight tons each were bought between 2009 and 2010 as Vale sought to build a maritime fleet to serve its clients, the Rio de Janeiro-based company said in a regulatory filing today. The ships were oil tankers converted into ore carriers, Vale said.
Chief Executive Officer Murilo Ferreira is selling asset in Brazil, Colombia and Europe as production costs rise and prices for minerals and metals decline. The vessels sale allays concern Vale was spending too much on ships at a time freight rates are falling, Barclays Plc analysts led by Leonardo Correa said in a note to clients today.