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EXCLUSIVE-Vale seeks up to $10 bln with iron ore streaming deal, sources say

SAO PAULO, Aug 3 (Reuters) - Brazil's Vale SA is considering raising as much as $10 billion from the sale of up to 3 percent of future iron ore output to undisclosed Chinese companies, two sources with direct knowledge of the matter said.

Under terms of the deal, Vale, the world's biggest iron ore producer, would receive streaming financing from the companies, said the sources, who asked to remain unidentified because the discussions are still private.

The idea is to sell part of the company's future output over a 30-year period, the sources said. The Rio de Janeiro-based company has not yet reached a decision to complete the iron ore streaming financing deal, the sources said.

The deal, along with a series of planned asset sales, could help Chief Executive Officer Murilo Ferreira reach his goal of reducing Vale's $27.5 billion net debt by one-third over the next 18 months.

Streaming allows mining companies to raise cash during times of low prices, locking in sales contracts while...


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