Brazilian miner and iron ore producer Vale may extend its Carajas railroad contract this year, according to a government official.
Sergio de Assis Lobo, director at Brazilian transportation agency ANTT, estimated this week the government may provide the needed conditions for Vale to extend the existing contract by September this year.
The 892-km (554-mile) railroad connects the world’s largest iron ore mine in Carajas in the state of Para to Vale’s Ponta da Madeira port in the state of Sao Luis. Lobo did not provide a specific figure, but said Vale may pay billions to extend the existing contract.
According to Vale estimates, the company transports about 120 million mt total of iron ore per year.