After China approved four ports on its coast last month and increased demand for iron ore, Vale decided to expand exports of the product through a terminal in Maranhão
Vale is targeting new businesses to supply Chinese demand and intends to increase shipments of iron ore to the Asian country. For this, the Brazilian mining company seeks to explore a port terminal in Maranhão.
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Multimodal logistics solution contemplating a deep water port, the Port Terminal of Alcântara (TPA) is located in the state of Maranhão and can receive large bulk carriers for the transport of iron ore, the so-called Chinamax or Valemax.
Vale is considering an increase in the use of ships after China imported record volumes of iron ore to meet the demand for raw material in the steel industry, due to the rise in the areas of infrastructure and civil construction in the country.
Vale's action comes after China approved four additional ports on its coast
Strong Chinese demand coupled with supply concerns caused the price of iron ore to rise to levels above US$110 per tonne in July, a record since August 2019.
“The Valemax by Vale were created by Brazil to bring its mines closer to China. Therefore, the approvals of the four deep ports are a vote of confidence in (Vale's) ability to supply quality iron ore. We think it is important for China to have diversified suppliers”, said Paulo Salvador, executive of the private operator of the Alcântara terminal, Grão Para Multimodal (GPM).
Transporting iron ore from Vale to China has already resulted in an accident on the coast of Maranhão
The Merchant Ship Stellar Banner, which ran aground off the coast of Maranhão in February this year while transporting iron ore from Vale to China, suffered a 'forced shipwreck' about 150 kilometers off the coast of Maranhão.
According to the Navy, the ship is already being prepared to avoid damage to the environment. Oily residues were removed, as well as floating objects or contaminants on board. Find out more details here.
