Vale has announced that it has obtained the necessary permits to expand the Carajas railway (EFC), connecting the mines in the state of Para with Brazil and the port of Ponta da Madeira.
With this permit, the vegetation removal permit (ASV) will allow an expansion project to increase the annual carrying capacity of the northern part of the Carajas railway, which is an important part of the CLN S11D project, to 230 million mt. With the expansion work on the Carajas railway, the necessary logistics infrastructure can be established for the Carajas Serra Sul S90D project with an annual production capacity of 11 million mt. This iron ore project is planned to be completed by 2017.
While an increase in iron ore production capacity is expected in the second half of 2016, the project is planned to go into full capacity production by 2017. The operating costs (mining, facility, railway and port), which will result from an annual increase of iron ore capacity of 90 million mt, are expected to be quite low. Accordingly, low-cost investments can be made again for the expansion of the facility in the future.