Vale SA in advanced negotiations to sell 19 vessels - Report

Sunday, 11 Dec 2011

Bloomberg reported that Vale SA, the iron ore producer building a fleet of the world's largest commodities ships, confirmed it's in advanced talks to sell 19 of the vessels after the plan spurred opposition from Chinese ship owners.

Mr Murilo Ferreira CEO of Vale has said that he is willing to sell the ships only if the company can lease them back under long term contracts. The talks were reported earlier by the O Globo newspaper, which cited an interview with Mr Ferreira.

Vale is spending at least USD 8.1 billion on the so called valemax vessels, including buying 19 very large ore carriers and leasing another 16 in long term contracts, as at seeks to lower freight costs from Brazil to China, its biggest market. The China Shipowners Association, whose members control about 80% of the nation’s shipping capacity, advised companies not use the vessels, according to Executive Vice Chairman Zhang Shouguo. None of the six vessels already in operation since April have called at Chinese ports.

(sourced from Bloomberg.net)

India's Tata Steel says no decision yet on Riversdale

Wed Feb 23, 2011 2:16pm GMT

MUMBAI Feb 23 (Reuters) - India's Tata Steel (TISC.BO: Quote), the world's No. 7 steelmaker, said on Wednesday it has not yet made a decision regarding its stake in Africa-focused coal miner Riversdale (RIV.AX: Quote).

Tata Steel holds a 24 percent stake in Riversdale, which has received a $3.9 billion bid from Rio Tinto (RIO.AX: Quote).

The company has till March 4 to decide on whether it will hold on to the stake or sell to Rio, but earlier this month its Managing Director Hemant Nerurkar told Reuters Tata Steel was primarily interested in securing coal supplies from Riversdale, and talking to Rio about various options.

(Reporting by Prashant Mehra; Editing by Aradhana Aravindan,sourced:Thomson Reuters)