By Li Hongmei

Vale - a Brazilian multinational diversified metals and mining corporation and one of the largest mining companies in the world - signed a US$500 million comprehensive strategic cooperation agreement with Shandong Shipping Corp on Oct. 31, under which the Chinese company will operate four of its large freighters, each weighing 400,000 tonnes, reports Beijing News.

Vale's vessels have been banned from anchoring at Chinese harbors since it first began to ship iron ore to the mainland 40 years ago due to the government's "big boat ban." Zhou Zhongshu, president of the China Minmetals Corp, said that large foreign freighters are currently blocked from Chinese harbors and can only anchor in other Asian countries, while using smaller boats to transport cargo.

The new deal with Shandong Shipping will let the enterprise overcome a number of barriers, the paper said, adding that China remains an important market for the Brazilian mining giant. Last year, 49% of Vale's total iron ore output was sold to China.

Jose Martins, Vale's executive officer for ferrous minerals and strategy said that Vale has shipped 1.1 billion tonnes of iron ore to China in the past 40 years. "We hope our shipments in the next six years will carry the same amount as our accumulated shipments did over the past 40 years," Martins added.

A company insider told the paper that under Vale's plans, its annual bronze output will amount to 480,000 tonnes in the next few years, while its nickle output will reach 300,000 tonnes and its iron ore to 450 million tonnes.