Vale to enter a 30-year period of sale?
Iron ore leaders Vale is contemplating raising up to $10billion from the sale of 3 percent of its future iron ore output to Chinese companies, sources have told Reuters.
As part of the sale, it is believed that Vale would receive streaming finance from the Chinese companies.
A final decision on the deal has not been reached yet, with the sources claiming that the company will sell part of its future iron ore output over a 30-year period.
Streaming is an agreement between a funder and a mining company to purchase all or part of its metals production at a low, fixed price. The agreement allows mining companies to raise capital during the current difficult climate.
Reuters reports that Vale has yet to comment on the story.
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