STX says damaged Vale ore ship can be repaired

The Vale Beijing, the giant iron-ore freighter which developed cracks in its hull on its maiden voyage in December, can be repaired and returned to service, its owner and operator, Korea's STX Pan Ocean said in a statement on Wednesday.

On December 6, the 400,000 deadweight-ton ship developed cracks while loading iron ore at Port of Ponta da Madeira, one of the two main ore-export terminals owned by Rio de Janeiro-based Vale SA, the world's second-largest mining company.

STX says the problem with the ship, which tied up loadings for several days at a port responsible for nearly 10 per cent of international iron-ore shipments, is likely an isolated issue and was not the result of improper loading by Vale.

The cause of the cracks in the hull of the Vale Beijing, one of the largest ships afloat, is still under investigation, STX said. The problem, though, is unlikely to crop up on the seven other so-called Valemax class vessels STX is having built to carry Vale iron ore, the statement said.

The cracks in the hull of the Vale Beijing, which is now at anchor off Sao Luis, did not result in the leaking of any polluting materials or cause harm to the environment, STX said.

Vale's press office said the company has no comment.

Vale expects the Vale Beijing, one of the first of 35 giant Valemaxes the company plans to build, to help cut shipping costs to China, the largest market for iron-ore, the main ingredient in steel.

Lower costs will help Vale better compete with rivals BHP Billiton and Rio Tinto , partly Australia-based companies whose principal iron-ore mines are much closer to China than Vale's Brazilian mines.