The Brazilian audit court, TCU, has rejected the renewal of an existing iron ore railway owned by Vale, according to a media report by Agencia Infra.
The Brazilian government sent in 2018 a proposal to help Vale renew, ahead of time, the existing concession it has at Estrada de Ferro Carajas (EFC). TCU said it rejected the proposal based on five points, including the asset base used in the project, demand projections, among other aspects.
Vale’s EFC has an 892-km (554-mile) extension, and connects its Carajás iron ore mine, in the state of Pará, to its Port of Ponta da Madeira, in the state of São Luís.