A South Korean shipping company with 10 vessels hired out to Vale SA the world’s largest iron-ore producer bought an 11th vessel for the mining company to use according to Mr Clarkson Plc the biggest shipbroker.

Polaris Shipping Co paid USD 44.4 million for the Mr Prem Putli a 20 year old ore carrier converted from an oil tanker in 2009 Mr Clarkson said that in a weekend report. The purchase price is more than three times the USD 13.9-million estimate of the vessel’s worth by VesselsValue.com an online valuation service owned by London based shipbroker Seasure Shipping Ltd.

The cost for the so called very large ore carrier incorporates the value of a 14 year charter to Vale according to Mr Clarkson. The Mr Prem Putli is owned by Mumbai based Mercator Ltd according to filings. Polaris in August paid USD 60 million each to buy 10 converted ore carriers owned by Vale that Seasure valued at USD 16.1 million apiece which were then leased back to the mining company.

Vale declined to comment on the Clarkson report a Rio de Janeiro based spokeswoman said that by e mail. Calls to Seoul based Polaris made outside of office hours were not answered.

Vale is looking to sell its fleet of ore ships the world’s largest commodity carriers that the company ordered to cut costs on the 35 day voyage to Asia the destination of about 45% of the steel-making commodity exported from Brazil. Chief Executive Officer Mr Murilo Ferreira said that in December the company planned to sell 19 of its Valemax ships.

Source - Manila Bulletin