Vale SA (VALE.US) announced in a securities document on Monday that it has reached an agreement with the local government to pay up to approximately 11 billion reais (1.78 billion dollars) to renegotiate two railroad concession contracts.
According to the Zhito Finance APP, Vale SA (VALE.US) announced in a securities filing on Monday that it has reached an agreement with the local government to pay up to approximately 11 billion reais (1.78 billion USD) to renegotiate two railroad concession contracts.
The Brazilian government has been committed to canceling the discounts granted to railroad companies for early contract renewals by the previous administration.
Vale SA stated in the document that it has reached an agreement with the government and the Land Transportation Regulatory Agency ANTT on the general terms for renegotiating the Carajás Railroad and the Vitória-Minas Railroad concessions, which were renewed in 2020 until 2057.
The company added that the agreement is still awaiting further approvals and will result in increased provisions of 1.7 billion reais related to its railroad concessions.