JINAN -- A large shipping company in East China signed an iron ore transport deal on Thursday, with the world's top iron ore miner Vale, worth over $500 million, company sources said.

Shandong Shipping Corporation also inked a strategic cooperation agreement with the Brazilian giant here in Qingdao city, Shandong province, where Shandong Shipping is based.

Under the deals, Vale have delivered four 400,000-ton ore vessels to an alliance initiated by Shandong Shipping to operate.

Established in 2010, Shandong Shipping has 24 vessels including those under construction with a total of over 4 million dead weight tonnage.

Previously, the Chinese company has signed a ten year deal with BHP Billiton.