Brazil’s mining giant Vale S.A. (VALE) will receive up to $1 billion in funding from Canada’s export credit agency in exchange for commitments from the world’s largest iron ore mine to work more with Canadian co.’s at home and abroad, Export Development Canada [EDC] said on Monday.
EDC, who wants to help Canadian companies establish a presence in supply chains, also said that half of the funding is reserved for Vale’s international operations, and the rest $500 million will be available for buying Canadian goods and services for Vale’s future operations outside Canada.
EDC believes that the financing package for Vale would create “hundreds of millions of dollars in potential supply and services opportunities” for Canadian companies over the next few years.
Vale’s shares were down 0.91% in New York on Monday, with shares selling at $31.41.
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