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22/06/2024
Mining News

JBIC partners with Vale: $480 million loan for Japanese iron ore supply

The Japan Bank for International Cooperation (JBIC) has recently announced its agreement to extend a loan of up to $480 million to Brazilian mining giant Vale. This financing aims to assist Japanese companies in securing pellets and iron ore concentrate from Vale, as stated on the financial institution’s website.

The loan, co-financed with private financial institutions, totals $700 million. These funds are designated to bolster domestic companies in ensuring stable, long-term imports of iron ore from Vale.

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JBIC emphasizes its intent to strengthen ties with Vale, a key partner in Japan’s resource strategy, as a leading global supplier of iron ore, nickel, and copper. The institution foresees opportunities for collaboration with Japanese companies, including joint ventures in Brazil and other countries.

Vale’s recent developments include the inauguration of the world’s first iron ore briquette plant in Tubarão, Brazil, at the end of last year. With over 30 global customers already showing interest, a second plant is slated to begin operations in 2024. Together, these facilities will have a combined annual production capacity of 6 million tons of briquettes, representing a $256 million investment.

Looking ahead, Vale aims to construct mega-hubs in the Middle East by 2024 to produce low-carbon iron ore products, with the first hub expected to be operational by 2027.

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