Brazilian miner Vale SA secured a $3.5 billion (4.7 trillion won) iron ore transport contract with South Korea’s HMM. This 25-year agreement represents the third and largest partnership between the two firms.
HMM will commission eight new Newcastlemax bulk carriers to fulfill the deal. Each vessel will have a capacity of 210,000 deadweight tons. Shipping services are scheduled to commence in 2030.
The new vessels will utilize tri-fuel engines capable of running on methanol, ethanol, or conventional fuel. The fleet design also allows for future conversion to liquefied natural gas or ammonia.
This partnership directly supports Vale’s strategic initiative to reduce carbon emissions within its global supply chain.