Brazil’s audit court, TCU, recommended that ground transportation agency ANTT decline to renew Vale’s iron ore railway concession, also known as the Estrada de Ferro Carajas (EFC), according to a media report from Valor.
Vale already owns the iron ore railway under a government concession. The company was looking to renew the concession, but the most recent TCU report indicates the miner might see its project delayed.
Auditors at TCU said Vale’s proposed railway renewal study doesn’t demonstrate concrete, effective benefits for the public interest that would justify a contract renewal.
TCU’s recommendations will go to regulator ANTT for approval. TCU said it can’t provide a “conclusive” evaluation of Vale’s iron ore railway concession renewal before ANTT discusses the matter.
Vale’s current concession contract expires in 2027, but the miner seeks to extend it to 2057. Considering Vale’s proposed 2057 contract extension, the miner expects to invest BRL 8.22 billion ($1.96 billion) by 2057.