Brazilian miner and iron ore producer Vale is demanding more incentives from the state of Mato Grosso do Sul (MS), so it can be more competitive and continue its activities in the state.
In a move to make its operations in the state of Mato Grosso do Sul more competitive, Vale met last week with the mayors of Corumba and Ladario as well as with state government authorities to present a proposal, in which it asks for benefits that could help it diminish its production costs mainly through improved logistics.
“We have the best iron ore, but we need to be more competitive. So we need logistics, with railways and waterways. They want help to improve the external environment so they can then rapidly produce more,” said Jaime Verruck, state secretary for the economic development of Mato Grosso do Sul.
Verruck said Vale produces 2.5 million mt of the commodity in the state, but has capacity to produce some 5 million mt.
The state secretary said the local government is working to reactivate a railway, but hasn’t advanced on it so far.