Brazilian iron ore giant Vale has announced plans to spend US$1.5 billion on tug and barge convoys for the company's logistical network.
According to Vale, the convoys are likely to be built in Brazil.
Vale has recently completed a US$750 million contract to purchase the Corumba iron ore mine in the state of Mato Groos do Sul. The company now plans to spend US$2 billion in expanding the capacity by 15 million tonnes a year.
The miner added that the high quality lump ore reserves were becoming increasingly scarce in southern and south-eastern mines.