South Korean dry bulk carrier STX Pan Ocean is planning to sign a KRW6tn ($4.97bn) contract of affreightment (COA) with Brazilian ore supplier Vale for eight vessels.

The 400,000dwt very large order carriers will be used for STX’s sister company STX Offshore & Shipbuilding, the company said.

The shipping company is believed to be carrying around 300 million tonnes of iron ore and will transport 12-13 million tonnes of iron ore a year for Vale.