Vale signs 600m yuan deal with Chinese company

Vale, the world's second largest mining company, signed a contract worth 600 million yuan ($95 million) with China Dalian Huarui Heavy Industry Group Ltd Co to buy machines and bulk material handling equipment for the company's port facilities in Malaysia, the company said on July 5.

The contract increased the total amount of Vale's purchased equipment from DHHI to 2 billion yuan over the past four years.

The Chinese company will provide Vale with nine various large-scale port machines and bulk material handling equipment before October 2013, in the largest single bulk cargo mechanical equipment export contract a Chinese exporter has ever received.

"The signing of this contract has extraordinary significance as it not only further strengthens the cooperation between our two companies, but also demonstrates Vale's intention to extend collaboration with Chinese companies," said Marcos Saraiva, Vale's global procurement director.

Vale has made purchases from Chinese companies totaling more than $3 billion so far and the company said it will expand local partnerships and establish long-term relationships in China.