Brazil Vale signs $171 million contract with shipyards

Friday, Jan 23, 2009

Mining giant Vale (VALE5.SA) (RIO.N) said Thursday it signeda $171.1 million contract with three Brazilian shipyards for the constructionof 49 ships, barges and tugs.

Fifteen tugboats will be added to the company’s fleet of 14boats. The first tugboat will be delivered this year and the others will beready by 2011, Vale stated.

The fleet will operate at Ponta da Madeira Maritime Terminalin Maranhao state, and at the Tubarao Complex in Espirito Santo.

Thirty-two barges and two pushers will be delivered by 2010.They will operate for Mina de Urucum in Mato Grosso do Sul state, transportingiron ore along the Brazil-Paraguay and Brazil-Argentina routes.

“”With the orders, Vale intends to meet the growthin demand for logistics services in the next coming years,”” it said.