SAO PAULO (Reuters) – Brazilian mining company Vale has reached an agreement with local authorities to pay up to 11 billion Brazilian reais ($1.78 billion) to renegotiate two railway concession contracts, the company said in a securities filing on Monday.
The Brazilian government aims to cancel discounts that the previous administration granted to railway companies when some of them received early contract renewals.
Vale indicated in its filing that it had reached an agreement on general terms with the government and road transport regulator ANTT to renegotiate the Carajas and Vittoria a Minas railway concessions, which in 2020 were extended until 2057.
The company added that the agreement is still awaiting additional approvals, and will result in an increase of 1.7 billion riyals in its provisions related to railway concessions.
($1 = 6.1778 riyals)
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