Vale announced Thursday that Brazil's state development bank, Banco Nacional do Desenvolvimento Economico e Social (BNDES), will lend the company $3.9 billion (US$1.93 billion) to improve logistics capacity by 30 percent to 150 million metric tons in the northern region of the country, where its largest mine is located. The funds will be used toward the logistics infrastructure in the Northern System of the Carajas railroad (EFC), and rail and maritime terminals of Ponta da Madeira in the Brazilian states of Para and Maranhão.
The total logistics improvement plan includes investments of US$4.1 billion, which are being spent on the 115 kilometer duplication of EFC, purchases of locomotives and wagons, and the construction of a fourth pier at the Ponta da Madeira maritime terminal. The start-up is scheduled for the first half of 2014.