Japanese shipping company Mitsui OSK Lines (MOL) has signed an agreement with Jiangsu Shagang Group of China to transport iron ore from Australia and Brazil.

MOL will start transporting the ore from West Australia/Brazil to Ningbo for ten years starting in late 2011, the company said.

According to MOL, the 207,000t iron ore carrier for the contract will be constructed at the Universal Shipbuilding Corporation and is scheduled to be completed in late 2011.

Earlier in July, MOL had signed a number of agreements with Rio Tinto, one of the world’s largest iron ore producers, to transport iron ore using its Capesize vessels and a 250,000t iron ore carrier.