As part of the sale, it is believed that Vale would receive streaming finance from the Chinese companies.
A final decision on the deal has not been reached yet, with the sources claiming that the company will sell part of its future iron ore output over a 30-year period.
Streaming is an agreement between a funder and a mining company to purchase all or part of its metals production at a low, fixed price. The agreement allows mining companies to raise capital during the current difficult climate.
Reuters reports that Vale has yet to comment on the story.