SAO PAULO (Reuters) – Brazilian mining company Vale has reached an agreement with local authorities to pay up to about 11 billion reais ($1.78 billion) to renegotiate two railway concession contracts, the company announced in a regulatory filing on Monday.
Brazil’s government has been aiming to eliminate discounts given to rail companies by the previous administration when some received early contract renewals.
In its statement, Vale noted that it reached an agreement on general terms with the government and the land transport regulator ANTT for the renegotiation of the railway concessions from Carajas and Vitoria to Minas, which in 2020 were extended until 2057.
The company added that the agreement still awaits additional approvals and will mean an increase of 1.7 billion reais in its provisions related to railway concessions.
($1 = 6.1778 reais)