Vale set to pull out of Pecém

Industry Database

Brazilian mining and transport company Vale is on the verge of abandoning its Vale Pecém installations at São Gonçalo do Amarante in the state of Ceará after just two years, given a growing financial deficit. In 2016 and 2017, it lost a combined $37m.

The company was originally set up in the Zona de Processamento de Exportação, or the Export Processing Zone, to exclusively supply iron ore to Companhia Siderúrgica do Pecém (CSP), a joint venture set up by Vale and South Koreans Dongkuk and Posco.

According to independent auditor KPMG in a report delivered on August 14, 2018, there exists “relevant uncertainty regarding the company's capacity for operational continuity”.

Despite questions about its long-term future, Vale has guaranteed to supply financial support until at least December so that the company can cover its contractual obligations and continue to operate without having to worry too much about its finances.

However, on October 2, 2017, Vale agreed to sell its subsidiary to CSP for $30m.

LATEST PRESS RELEASES

ShibataFenderTeam supports PIANC Young Professionals

As one of the world's leading fender specialist, we consider it our responsibility to do our part fo... Read more

NEW CRANE ENTERS SERVICE AT WARRENPOINT PORT FOLLOWING £3 MILLION INVESTMENT

Warrenpoint Port has commissioned a new crane and has commenced the refurbishment of two other crane... Read more

Bigger share of modal split envisaged for inland shipping in the Baltic Sea Region

A vision for inland waterway transport (IWT) in the Baltic Sea Region as well as means to strengthen... Read more

QTerminals reaches new container and cargo handling milestones in record time

Over two million containers and five million tonnes of cargo handled Read more

Bendezu Port Equipment delivered two GOTTWALD HMK 6407 B from BELGIUM to SPAIN

Bendezu Port Equipment GmbH, an international trading company offering second-hand port equipment, h... Read more

View all