The Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (Nexi) signed memorandums of understanding on May 14 to support the five-year, US$59bn investment plans of Companhia Vale do Rio Doce (Vale) and promote natural resource related business operations conducted by Japanese firms.

The memorandums will see the two Japanese organisations co-operating in lending and insurance operations for selected projects contained within the investment plan of the Brazilian mining company, with the JBIC considering financing capped at US$3bn and Nexi insurance coverage not exceeding US$2bn.

The agencies will give priority to projects undertaken by Vale that assist the business development of Japanese companies and have included provisions in the memorandums for periodic consultations to be held to advance this strategy.

Vale is the world's largest iron ore supplier and a major iron ore producer and is planning a global resource development programme.