South Korean shipper Pan Ocean has won a 1.98 trillion won ($1.82 billion) contract to transport iron ore over a period of 27 years for Brazilian mining giant Vale, Reuters reported.
The South Korea company said in a regulatory filing that it is set to carry iron ore from Brazil to China from January 2020 to August 2047.
According to Straits TImes, the contract commences from the first quarter of 2020. "The main objective of the company for entering into this COA is to secure a stabilised source of revenue and profit," said Pan Ocean.
Pan Ocean also said it has placed orders worth 483 billion won with a Chinese shipbuilder for six very large ore carriers. The new ships are intended to be employed on long-term cargo contracts. The ships are scheduled to be delivered by September 2021.
Pan Ocean said Vale is in the process of signing long-term contracts involving a total of 30 vessels, from seven shippers, both in South Korea and overseas.