Rio de Janeiro – A R$ 6.2 billion (US$ 2.7 bn) loan from the do Brazilian Development Bank (BNDES) will enable Brazil’s Vale company to build an iron ore mining and processing unit with capacity for 90 million tonnes per year, and a railway line connecting the cities of Canaã dos Carajás and Parauapebas, in the state of Pará.
The funds will also be allocated to expanding the Carajás Railway transport capacity to 230 million tonnes per year, and to social development initiatives in the region. The loan’s approval has been announced by the bank this Tuesday (15th).
According to the BNDES, the loan will help create up to 30,000 direct jobs and increase Brazilian ore exports, which should impact positively on the balance of trade.
Apart from the BNDES loan, the project counts on R$ 1 billion worth of infrastructure debentures issued by Vale in January this year, in a bid to accrue the funds required to implement the new railway line.
*Translated by Gabriel Pomerancblum
