Vale: Positive Discussions With China Over Valemax Ships

Brazilian miner Vale SA said Wednesday talks with China over permitting entry to its waters for supersized iron-ore freighters are "positive."
Vale and China are now talking about technical requirements for accommodating the Valemax fleet, the company's head of iron-ore marketing Luiz Meriz told The Wall Street Journal on the sidelines of a conference. These talks cover berth strength and port depth.
China's transport ministry wasn't immediately available for comment.
Chinese shipping-industry opposition to the superships has been "exaggerated," Mr. Meriz said.
Vale wants China to allow direct access for the supercarriers to reduce transport costs compared with Australian rivals Rio Tinto Plc and BHP Billiton Ltd. It argues the ships reduce pollution.
In the meantime, Vale will still start its iron-ore distribution center in Malaysia by the middle of next year, he said.
And, a second "floating transshipment station" for the Valemax fleet at Subic Bay in the Philippines was commissioned this month, Mr. Meriz said. Feeder ships transport ore delivered to Subic Bay by the Valemax to Qingdao port in China, he said. The journey to Qingdao takes 4.2 days.
Source: Dow Jones