Vale has announced that it has obtained the necessary permits to expand the Carajas railway (EFC) linking the Brazilian mines of Para and the port of Ponta da Madeira.
With this permission, the vegetation clearance permit (ASV) will allow the expansion of the annual capacity of the northern part of the Carajas railway, an important part of the CLN S11D project, to 230 million mt. With the expansion of the Carajas railway, the necessary logistics infrastructure for the Carajas Serra Sul S90D project with an annual production capacity of 11 million mt will be established. This iron ore project is planned to be completed by 2017.
The iron ore production capacity is expected to increase in the second half of 2016, while the project is expected to be fully operational until 2017. Operating costs (mine, plant, railway and port), which are expected to increase by the annual 90 million mt in iron ore capacity, are expected to be quite low. Accordingly, low-cost investments can still be realized for the expansion of the plant in the future.