SAO PAULO (Reuters) – Brazilian mining company Vale has agreed to pay up to approximately 11 billion reais ($1.78 billion) to renegotiate two railway concession contracts with local authorities, according to a securities filing released on Monday.
The Brazilian government has been working to eliminate discounts that were granted to railway companies by the previous administration when some of them were granted early contract extensions.
Vale stated in the filing that it has reached a preliminary agreement with the government and the National Land Transport Agency (ANTT) on the renegotiation of the Carajas and Vitoria a Minas railway concessions, which were extended until 2057 in 2020.
The company mentioned that the agreement is still pending additional approvals and will result in a provision increase of 1.7 billion reais related to railway concessions.
($1 = 6.1778 reais)