Brazil's Vale Places $1.6B Order With China For 12 Iron Ore Vessels

August 4, 2008 12:19 p.m. EST

Sao Paolo, Brazil (AHN) - Vale, the world's largest iron ore producer, has placed a multi-billion dollar order for 12 huge iron ore carriers from China's Rongsheng shipbuilder.

Reports said the Brazilian mining company has ordered 12 large ore carriers worth $1.6 billion.

The vessels - the biggest of its kind in the world - will have a capacity of 400,000 dead-weight tons and will ship the company's iron ore from Brazil to Asia.

The first of the ships will be delivered in early 2011 with completion of the order a year later. Rongsheng Shipbuilding of China and Heavy Industries will build the carriers.

The mining company last month reportedly sold new stock in New York , Paris and San Paolo raising $11.5 billion to finance, at that time, its $59 billion investment plan.