Brazil's Vale, Japan state firms to sign pact
TOKYO, May 13 (Reuters) - Vale (VALE5.SA)RIO.N and three Japanese state-owned firms will sign financial and technological cooperation pacts on Wednesday to help promote Japanese companies' resource development abroad with the Brazilian mining giant.
Under the agreement, Nippon Export and Investment Insurance will underwrite up to $2 billion for companies located in Japan that are joining Vale's resources development projects.
The Japan Bank for International Cooperation will set a credit line of up to $3 billion for such Japanese companies.
"The agreement is aimed at securing resources vital to Japan through stronger ties with global resource majors like Vale," an official of the Ministry of Economy, Trade and Industry said.
Amid skyrocketing resource prices, Japanese miners are losing out against mounting competition from global resource majors and the rising power of China to find minerals due to a lack of financial resources and operational know-how.
Calls for government support to boost the nation's access to oil and mineral resources has been increasing as China steps up efforts to secure raw material supplies with government backup.
Resources development company Japan Oil, Gas and Metals National Corp, meanwhile, will share its remote sensing technology to find minerals in African countries using satellites.
