- Region: Latin America and the Caribbean
August 4, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on August 1(Brazilian Time), a memorandum of understanding (MOU) on operational cooperation with Vale S.A. (VALE) in Brazil, one of the world's leading resource majors, in Brasília, the capital of Brazil, taking an opportunity of Prime Minister of Japan H.E. Shinzo Abe's visit to Brazil. The signing of MOU was recognized and exchanged in the presence of Prime Minster of Japan H.E. Shinzo Abe and President of Brazil H.E. Dilma Rousseff.
This MOU was developed out of the MOU signed in July 2013*1, and its main objective is operational cooperation through consultations toward realizing projects that will contribute to Japan's securing of mineral resources, their stable supply and exports of mine-related machinery and equipment.
In recent years, the needs for long-term financing have been increasing, due to increasing projects CAPEX in the development of iron ore and coking coal and related infrastructure. Amid these circumstances, business opportunities to participate in these projects by Japanese companies are expected to increase and diversify. With this MOU, JBIC intends to contribute to securing mineral resources and their stable supply to Japan as well as creating the opportunities to export mine-related machinery and equipment by Japanese companies, by further strengthening of the conventional partnership with VALE through deepening consultations regarding development and operation projects of mineral resources, including iron ore, coal and nonferrous minerals. VALE is one of the world's leading suppliers of high quality iron ore and mineral resources, and has built good and long business relations with Japanese companies. And JBIC has provided to VALE multiple loans to date, and has been exchanging opinions and discussions periodically with them.
As Japan's policy-based financial institution, JBIC will continue to support the development and acquisition of mineral resources as well as exports of machinery and equipment related to mineral resource development by Japanese companies, through close business collaboration with VALE and other important partners in mineral resource development projects.