Brazil's Vale sells forestry assets to Suzano

SAO PAULO, July 14 (Reuters) - Brazilian mining company Vale (VALE.N)(VALE5.SA) agreed to sell land and timber assets to paper and pulp maker Suzano Papel e Celulose (SUZB5.SA) for at least 235 million reais ($145 million), both companies said on Tuesday.

The purchase of 84,700 hectares (840,000 square meters) of land as well as an agreement to use Vale's railway that connects its iron ore mines in the Amazon to the port of Sao Luis in northern Brazil will allow Suzano to set up a paper and pulp facility in the region as early as 2013.

Under the agreement, Suzano will buy timber from Vale's reforestation program in the northern state of Maranhao for an undisclosed amount, the companies said in separate statements.

Shares of Suzano rose 1 percent to 14.37 reais in Sao Paulo. Preferred stock of Vale, the most widely trade stock of the company, fell less than 0.1 percent to 28.24 reais. ($1=1.97 reais) (Reporting by Guillermo Parra-Bernal and Alberto Alerigi Jr., editing by Matt Daily)