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The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on March 30 a loan agreement amounting to up to USD480 million (JBIC portion) with Vale S.A. (VALE) in Brazil. The loan is co-financed with private financial institutions, bringing the total co-financing amount to USD960 million.
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The loan is intended to provide the funds required for Japanese blast furnace manufacturers to stably import high-quality iron ore from VALE. Iron is used extensively for various products, including automobiles and construction materials, and is a fundamental metal resource for Japanese industry. For iron ore, however, Japan depends entirely on overseas imports. The demand for iron ore is increasing on a global level with the rise of emerging economies such as China, and it has become an important challenge to secure a stable and long-term supply of high-grade iron ore. The loan will help ensure the stable supply of the mineral resource and contribute toward strengthening Japan’s relationship with VALE, which is an important partner in terms of the country’s natural resource strategy.
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VALE has established favorable and long-standing business relationships with Japanese companies as a world leading supplier of mineral resources such as iron, nickel, and cobalt. It is also expected to expand and diversify opportunities to collaborate with Japanese companies in business areas such as mining development. JBIC will further develop the relationship and alliance with VALE and strive to contribute toward ensuring a stable supply of mineral resources for Japan, as well as create investment and export opportunities for Japanese companies.
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As Japan’s policy-based financial institution, JBIC will continue to provide financial support to help secure a stable supply of mineral resources by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
