DUBAI: Oman Shipping Company has signed a 137 million rials ($355.8 million) loan with two local banks to fund the acquisition of four Very Large Ore Carriers (VLOCs), it said in a statement on Monday.

The VLOCs will be chartered to Vale International VALE5.SA for a period of 20 years, the statement said, adding Vale had iron ore pelletizing facilities in the sultanate with a capacity of 9 million tons per year — with exports going to South Asia.

The facility, which has a 12-year lifespan, saw Bank Muscat contribute 107 million rials and Bank Dhofar provide 30 million rials.

The VLOCs each have a capacity of 400,000 deadweight tons (DWT), the statement added.