SAO PAULO, June 23 (Reuters) - Vale, (VALE.N)(VALE5.SA) the world's largest iron ore producer, said on Tuesday it would begin to produce biodiesel from palm oil from 2014 to fuel its Carajas mine and railway operations in Brazil's north.
In a joint venture with biodiesel producer Biopalma da Amazonia, Vale plans to invest $305 million, with $40 million in 2009 alone.
The company plans eventually to use 20 percent biodiesel blend in the diesel consumed by its railway locomotives and large equipment servicing the Carajas iron ore mine, the company's main iron ore mine.
Vale, one of the largest consumers of diesel in Brazil, plans to hold a news conference on Wednesday in Rio de Janeiro on its new biodiesel project.
24th June 2009
It was possible to grow a rail operator's volumes, despite keeping investment low, Brazilian rail operator America Latina Logistica (ALL) GM Luiz Eduardo Wormsbecker told delegates at the twelfth Africa Rail conference on Wednesday.
He noted that ALL, which operates railway lines in Argentina and Brazil, has managed to increase its volumes while keeping investment low by making the “best possible use” of its current infrastructure.
The company was hoping to grow its revenues to 45-million revenue ton-kilometres (RTKs) in 2009, up from the 38-million RTKs in 2008.
It has been steadily growing its RTKs and earnings since the late 1990s, Wormsbecker indicated.
He noted that the company tried to save on costs by refurbishing old wagons and rehabilitating these, while also boosting the productivity of its staff.
Every unit within the company was given a set of goals to achieve in a year and everyone was compensated according to their performance in meeting those goals.
Carajás Railway to use biofuel
29 Jun 2009
BRAZIL: Mining group Vale has announced plans to become self-sufficient in the production of B20 biodiesel for its locomotives, which since 2007 have run on a B20 mix of 20% palm oil and 80% ordinary diesel.
On June 24 Vale announced details of a consortium with Biopalma da Amazônia, which aims to produce 500 000 tonnes of palm oil per year from 60 000 ha of palm plantations. Vale has a 41% stake in the consortium, and will use its share of the palm oil to feed a wholly-owned biodiesel plant with an annual output capacity of 160 000 tonnes. Vale's total investment in the consortium and plant will be US$305m.
The biodiesel will be used to power mining equipment and the 216 locomotives on the Carajás Railway by 2014, ahead of the implementation of regulations requiring the use of B20 in 2020. In 2008 Vale consumed 940 million litres of diesel across its Brazilian operations, and 19 million litres of B100 biodiesel.
Locomotives on Vale's Vitória a Minas Railway are being run on a mixture of diesel and 50% to 70% natural gas. Vale estimates that running the EFVM and Carajás railways on natural gas could cut CO2-equivalent emissions by 73 000 tonnes/year.
Miner opening doors in Brazil
Vale, the Brazilian multinational mining corporation, has selected Miner Enterprises, Inc. to supply AggreGate® ballast systems on ballast hoppers built by Brazilian railcar manufacturer Amsted-Maxion Fundacao e Equipamentos Ferroviarios Ltda.
The air-powered AggreGate® ballast discharge system on each of Vale’s new cars have the capability, through dual cylinder technology, to independently unload on the inside and outside of the rail using remote control. Miner says the large door openings allow for faster discharge, and the guillotine gate doors open and close immediately at bridges and crossings—shearing through solid rock with the touch of a button. Additionally, the remote control will allow the operator to safely select individual cars and specific gates from a distance for accurate and highly efficient ballasting.
Vale's cars are the first that Amsted-Maxion is building with the AggreGate® unloading system; Miner will be sending a technical support team to Brazil to assist with installation and deployment in the field.
“The state-of-the-art air-powered dual cylinder AggreGate® system was specified for this order, demonstrating Miner’s international reach and reputation for high-quality freight car components around the world,” said Miner Director of International Sales. Bill O’Donnell. “The rail industry has truly become global. Our customers could be in Nebraska or Brazil and their needs are exactly the same: They are looking for total engineering—top to bottom—solutions and products that meet their needs.”
Miner Enterprises Inc. will supply AggreGate® ballast discharge systems for Brazilian miner Vale’s ballast wagons. The air-powered AggreGate® systems can independently unload on the inside and outside of the rail via remote control; the large door openings enable faster discharge and the guillotine gate doors open and close immediately at bridges and crossings. The company will send a technical team to work with Brazilian rail-car manufacturer Amsted Maxion to “ensure that these cars meet all of Vale’s expectations,” said Miner Director of International Sales Bill O’Donnell in a prepared statement.
SAO PAULO, Nov 6 (Reuters) - Brazilian iron ore mining company Vale (VALE5.SA) (VALE.N) signed on Friday an agreement worth 900 million reais ($520 million) over three years granting access to its railway and port operations to local steel maker Usiminas (USIM5.SA).
The agreement will allow Usiminas access and information on the movement and availability of railway cars on Vale's Centro-Atlantica (FCA) and Vitoria a Minas (EFVM) railways, the company said in a statement.
Vale will also receive at its Praia Mole terminal at the Tubarao port in Espirito Santo state all the coal that Usiminas imports for its steel production at its Ipatinga plant in Minas Gerais state. It will transport the coal on its EFVM railway.
The contract is expected to result in the movement of more than 10 million tonnes of additional materials and finished steel products over Vale infrastructure.
Vale's railways will also transport Usiminas steel products from its Ipatinga plant to the coast of Espirito Santo, distribution centres, and to clients in Belo Horizonte, in Minas Gerais state, and in Sao Paulo state.
(Writing by Reese Ewing; Editing by David Gregorio)
GE Transportation recently signed an agreement with America Latina Logistica (ALL) to deliver 10 new AC44i locomotives. Powered by diesel engines supplied by GE Transportation’s manufacturing plant in Grove City, Pa., the Model AC44i features the builder’s AC individual-axle traction-control technology, which enables the locomotive to haul heavier loads by reducing slippage on start-ups, inclines and suboptimal track conditions, the company said in a prepared statement. They’ll be built by GE Transportation South America in Contagem, Brazil, and are scheduled for delivery later this year. ALL, which operates South America’s largest independent general cargo railway, operates a fleet of more than 1,000 locomotives that run over 13,020 track miles connecting Brazil and Argentina.
GE Transportation recently signed an agreement with Brazilian sugar/ethanol producer Cosan to deliver 50 new AC44i locomotives starting later this year. Cosan will use the new locomotives to haul sugar from its processing plants to port via rail infrastructure provided by America Latina Logistica. The Model AC44i units, which are powered by diesel engines supplied by GE Transportation’s Grove City, Penn., plant, will be built by GE Transportation South America in Contagem, Brazil.
Sugar firm orders 50 GE locomotives
08 January 2010
BRAZIL: Sugar and ethanol producer Cosan has signed an order for 50 AC44i diesel-electric locomotives, GE Transportation announced on January 7. They will be used by Cosan's logistics subsidiary Rumo to haul sugar from processing plants to the Port of Santos using América Latina Logistíca's rail network.
Deliveries will start later this year. The locomotives will be built by GE Transportation South America at Contagem in Brazil, with engines supplied from Grove City in the USA.
ALL to invest US$162mn in Mato Grosso - Brazil
Wednesday, May 26, 2010 14:43 (GMT-0400)
Brazilian railway operator America Latina Logistica (ALL) (Bovespa: ALLL11) will invest 300mn reais (US$162mn) in southern state Mato Grosso during 2010, according to company CEO Bernardo Hees.
The investment will go toward a project in Rondonopolis city, where ALL is building 260 km of railroad, as well as new train yards and rail lines accessing ports. The firm will also purchase 30 locomotives, 600 wagons and 10,000t of rails.
The funds earmarked for southern states represent 30% of the 1bn reais ALL intends to spend this year, state news service Agencia Estado reported.
Hees made the statement on Tuesday during the Foruns Estadao Regioes - Sul forum in Sao Paulo, which discussed upcoming projects in the southern states of Brazil.
From Revista Ferroviária
Rumo receives GE locos at the end of June
RF - Rumo Logistica is to receive until the end of June, the first AC44i locomotives acquired from GE Transportation. The logistics company belonging to Cosan Group acquired 50 machines equipped with diesel engines provided by the GE Transportation plant in Grove City, Pennsylvania, USA.
The locomotives have the GE technology of single traction control for individual axis AC traction allowing the AC44i model to carry heavier loads while significantly reducing the sliding at start ups. The AC44i model locomotives are equipped with dynamic break, in addition to air break to provide a more smooth handling when transporting heavier loads.
The new locomotives will be used for the transportation of sugar from the Cosan processing plants until the Santos port for exporting.
June 30 (Bloomberg) -- Usinas Siderurgicas de Minas Gerais SA, Brazil’s second-largest steelmaker, agreed to sell a stake in its mining and railroad businesses to Sumitomo Corp. for $1.93 billion ahead of a possible sale of shares in the unit.
Sumitomo will buy 30 percent of unit Mineracao Usiminas SA, the Belo Horizonte, Brazil-based company said today in a regulatory filing. The unit will own 83 percent of railroad operator Usiminas Participacao & Logistica SA.
Usiminas is seeking to profit from surging iron-ore prices by selling a stake and spinning off the unit, which the company said may be worth $6.43 billion. Cia. Siderurgica Nacional SA, the Brazilian steelmaker known as CSN, also plans to sell shares in its iron-ore operations.
“Sumitomo agreed to pay a considerable amount,” Marcos Assumpcao, an analyst at Itau Unibanco Holding SA, said in a telephone interview from Sao Paulo. “That reflects strong global demand for iron ore.”
Tokyo-based Sumitomo follows other Asian companies acquiring assets in South America to secure supplies of iron ore, the main raw material used to make steel, as demand in China rises.
A group that included Posco and Nippon Steel Corp. last year completed the acquisition of a 40 percent stake in the CSN’s Namisa unit for $3.12 billion.
“Global iron-ore demand is pretty strong, prompting clients to seek partnerships to secure supplies,” Usiminas Chief Executive Officer Wilson Brumer said today on a conference call. He said the company doesn’t yet have a timeline for a public share sale in the unit.
The Usiminas unit owns iron-ore mines in the south-eastern Brazilian state of Minas Gerais and the Itaguai port project in neighbouring Rio de Janeiro state. Usiminas plans to boost annual iron-ore output more than fourfold to 29 million metric tons by 2015, Brumer said today.
The railroad business includes a 20 percent voting stake in MRS Logistica SA, a rail operator in south-eastern Brazil. Vale SA and CSN also hold stakes in MRS.
CSN is seeking to spin off its mining unit to sell shares in an initial public offering to finance expansion. The spin-off includes iron-ore mine Casa de Pedra, 60 percent of the Namisa mine, its stake in MRS and an iron-ore port project in Brazil, the company said Nov. 4.
Usiminas shares fell 65 centavos, or 1.3 percent, to 49.05 reais at 12:23 p.m. in Sao Paulo trading. The stock has fallen 0.7 percent this year, compared with a 9.2 percent drop for Brazil’s benchmark Bovespa index.
Brazil Rail Freight Rates May Fall as Much as 40% With New Rules
July 06, 2010, 7:52 AM EDT
July 6 (Bloomberg) -- Brazil rail freight rates may fall as much as 40 percent as a result of new rules the government plans to introduce through a presidential decree by the end of July, said the country’s land transportation agency, ANTT.
“We’re opening alternative rail corridors in the most critical areas and creating a more competitive environment,” Bernardo Figueiredo, head of ANTT, said in an interview in Brasilia yesterday.
President Luiz Inacio Lula da Silva is expected to sign a decree by the end of the month to change rules governing the rail industry, Figueiredo said. The new plan may lead to 5,000 kilometres (3,107 miles) of new railway lines by 2011, he said.
Vale SA, MRS Logistica SA and ALL America Latina Logistica SA are among the main railroad operators in Brazil. The government plan will require those companies to allow the use of their railways by other groups, under a toll charge, Figueiredo said.
The plan will also require idled railways to be put back into operation. According to ANTT, only 10,000 kilometres of Brazil’s 28,000 kilometres of railways are currently in use.
July 12 (Bloomberg) -- Brazil’s government will start talks with ALL America Latina Logistica SA, Vale SA and other railroad operators about new rules designed to boost competition and cut freight costs, Transportation Minister Paulo Sergio Passos said.
President Luiz Inacio Lula da Silva will issue a decree “soon” that aims to increase the sharing of railways and put idled tracks back into operation, Passos said in an interview. Under the new regulatory framework, the government would grant licenses to use a portion of the rail’s capacity rather than awarding the full rights to a single company or group, he said.
“By doing that, we’ll cut freight costs and create more competition,” Passos said July 8 in Brasilia. “Existing contracts will be respected.”
Brazil wants companies such as ALL, Vale and MRS Logistica SA to help expand the nation’s rail network, which hasn’t kept up with record output of soybeans, coffee and other commodities, Passos said. The investments will help increase the percentage of goods transported by rail to 35 percent by 2025 from 25 percent now, according to the Transportation Ministry. That compares with 43 percent in the U.S. and 37 percent in China.
“If we consider the pace of growth for grain and oilseed output, Brazil is still far from its limit,” Passos said.
Control of Concessions
Rio de Janeiro-based Vale and Curitiba, Brazil-based ALL hold two-thirds of the rail concessions granted in the South American nation, according to the National Association of Railroad Operators. Vale and ALL’s press offices declined to comment. MRS Logistica didn’t return messages seeking comment.
“The government will need to negotiate well with the operators to avoid judicial disputes,” Rosangela Ribeiro, a utilities analyst for Sao Paulo-based SLW Corretora de Valores e Cambio Ltda, said in a telephone interview today. “If the government is willing to negotiate, then it’s going in the right direction.”
Ribeiro rates ALL a “hold” and doesn’t own shares of the company.
Brazil’s rail freight rates may fall as much as 40 percent because of the government’s new rules, Bernardo Figueiredo, head of the land transportation agency, said in a July 6 interview.
‘Far’ From Capacity
Brazil’s government will be responsible for building all tracks under the new regulations, which will help the nation add 15,000 kilometres (9,300 miles) by 2020, Passos said. Out of a current rail network of 28,476 kilometres, less than half is being used to its full capacity, he said.
“Requiring the main private groups to allow other players to use their network by paying a fee is not sustainable,” Itau Securities analysts Renata Faber and Fernando Abdalla said in a July 7 note to clients. “At the end of the day, we believe that these new measures will only be applied to new concessions.”
Brazil’s central bank said June 30 that it expects the country’s economy to expand 7.3 percent in 2010, the fastest pace in more than two decades. The bank in March forecast growth of 5.8 percent this year.
Soybean output in Brazil, the world’s second-largest producer after the U.S., will rise to a record 68.7 million metric tons this year, while corn output will increase to a record 53.5 million tons, the Agriculture Ministry said July 8.
Dependency on Roads
Brazil aims to cut its dependency on roads to 30 percent of total goods transported by 2025 from 58 percent now, the Transportation Ministry said. In Brazil, it costs an average of $27 per ton to transport goods by rail, less than a third of the $117 per-ton cost to use roads, according to Rio de Janeiro- based Logistics and Supply Chain Institute.
ALL fell 1.2 percent to 14.31 reais at 1:49 p.m. in Sao Paulo trading. Vale SA declined 1.6 percent to 38.40 reais.
Vale signs railroad and port contracts with Gerdau Acominas
Published: 05 Sep 2010 23:48:02 PST
SteelOrbis - Brazilian iron ore behemoth Vale has signed contracts with Brazilian steelmaker Gerdau Açominas to transport steel products and coal using its logistics infrastructure, namely Vitória Minas Railroad (EFVM) and Praia Mole Terminal (TPM) in Espírito Santo, over the next three years.
According to a Vale statement, in 2010 it is envisaged that 4.5 million mt of freight will be transported under the deal, rising to 6.2 million mt in 2012. The miner said that this is the largest freight transport deal ever made with Gerdau Açominas, one of Vale's three biggest steelmaking clients.
The steel products will be transported on the EFVM from Gerdau Açominas' plant in Ouro Branco, Minas Gerais, to TPM at Tubarão Complex in Espírito Santo. Vale will also receive the coal that Gerdau imports at TPM and will convey it along the EFVM to the steel plant in Ouro Branco
23 September 2010
BRAZIL: President & CEO of GE Transportation Lorenzo Simonelli announced the signing of the ’largest locomotive purchase agreement in the history of Brazil’ at InnoTrans on September 23.
The agreement worth ’in excess of 600m reais’ had been signed with MRS Logística the previous day. It covers an initial 115 AC44i locomotives to be delivered in 2011-15 for use on 1 600 mm gauge heavy haul iron ore trains, with an option for a further 100.
They will be produced at GE Transportation South America's plant in Contagem, Brazil, with 12 cylinder FDL engines supplied from the Grove City site in the USA. The size of the order means GE will be able to increase the local content to more than 50%.
Simonelli said the locomotives will incorporate ’the latest and greatest’ technology, allowing the replacement of existing machines on a three-for-four basis and a 15% cut in both greenhouse gas emissions and operating costs per locomotive.
Deal of the day: railway plans attract investment for Brazilian iron ore mine
September 22, 2010 2:29pmby beyondbrics
By Oliver Adelman of mergermarket
In the new Brazil, the railway age often seems to have passed. The country has only as much track as it did in the 1920s, and a third of it lies unused.
But now a $670m deal has highlighted how some miners are still waiting for the train. Eurasian Natural Resources Corporation - a metals producerin the spotlight over its business in Africa - is increasing its stake in a Brazilian iron ore project, partly because a planned railway will help exports via Atlantic ports.
ENRC already owns 50 per cent of the mining project, Bahia Mineracao, which is located in the northeastern state of Bahia. It will now buy the remaining 50 per cent from a subsidiary of Zamin, a privately-held Swiss group. Under the deal, which was announced on Tuesday, ENRC also has an option to buy Zamin’s 100 per cent stake in Greystone Mineracao do Brasil, which mines iron ore in the same area, for not more than $150m.
Production at the Bahia Minerals project is expected to start in 2013, and to reach 19.5m tonnes of concentrate in 2014. The ore will be transported from the mine to the coast by a 1,500km railway.
ENRC is fortunate that there are other mining projects in the same region that are encouraging the Brazilian government to build the railway, which could cost over $1bn.
However, it’s unclear when construction of railway will begin; ENRC says it will not pay Zamin for the additional stake until it does, and until the company receives a licence to build a port. A public tender for the building contract is ongoing, and ENRC expects the government to select a winner in the fourth quarter of 2010.
ENRC’s strategy is to diversify away from its current focus on Kazakhstan, said Brad George, a resource analyst at Matrix Corporate Capital. George told mergermarket:
ENRC wants access to the global seaborne iron ore trade.
ENRC are trying to get out of Kazakhstan. All their present exports routes are land-locked.
ENRC paid $306m for 50 per cent in Bahia Minerals in 2008. Sergey Donskoy, a senior metals and mining analyst at Troika investment bank in Moscow, said that the project is now “at a considerably more advanced stage”. However, Donskoy sounded a note of caution with regard to the overall state of the iron ore market:
The attitude toward iron ore among investors is rather cautious these days, so any big-ticket acquisitions in this sector - especially with somewhat opaque economics and involving execution risks that are rather difficult to calculate - are likely to receive a tepid response.
Indeed, investors seemed unenthused by the deal, with ENRC’s shares falling 2.7 per cent in London on Tuesday, underperforming the FTSE 100. The shares partially recovered on Wednesday, trading up over 1 per cent at 1300GMT.
Vale SA, LLX Logistica SA, MRS Logistica and the Brazilian government may invest 1.2 billion reais ($710 million) in railway lines to connect iron-ore mines with Port Acu in Rio de Janeiro state, Valor Economico said.
A preliminary agreement may be signed shortly, Bernardo Figueiredo, head of the country’s land transportation agency, known as ANTT, told the Sao Paulo-based newspaper.
Horizonte Minerals poised for success in Brazil
Tuesday, November 16, 2010
The past 18 months have seen Horizonte Minerals (LON:HZM) lay the groundwork for success. The next year and a half will be pivotal to achieving those aims – and the newsflow will be coming thick and fast from here on in.
For most ambitious junior miners, the ultimate vindication of their strategy is tying up a deal with one of the majors.
Well, Horizonte under the guidance of boss Jeremy Martin has negotiated joint ventures with two marquee names – AngloGold Ashanti and Teck Resources. The agreements cover three of its projects.
But here I’m getting ahead of myself. Horizonte was set up in 2006 to discover and develop opportunities in Peru and Brazil. The model didn’t really curry favour with a market more interested in juniors with a production story, or a JORC resource at the very least.The one involving Teck brings the Canadian firm on board as a 50 per cent shareholder and knits together two subscale nickel plays, creating a substantial project that could as it is develops prove transformational for Horizonte and its investors.
But Martin and his team have stuck to their guns admirably and are now reaping the rewards of that perseverance.
The company is now essentially focused on Brazil – and gold and nickel specifically. And it has targeted one particular part of the country – the Carajas region.
This is because Carajas is an established mining area with infrastructure such as road, rail and power, which makes it easier to take a project from discovery to production.
Martin played a shrewd hand putting together Horzonte’s Lontra nickel laterite area with neighbouring Araguaia to create a combined 100 million tonnes resource, which has the potential to grow significantly.
The assets were brought into the Horizonte portfolio for a knock-down 0.7 cents per pound of nickel in the ground.
Valuations of similar projects with equivalent or lower nickel grades are valued at between 1 cent and 6 cents per pound, giving a mean figure of 3 cent.
The fast-track development of Araguaia ought to help unwind this discount, which would have a major impact on the share price.
The dream result for Horizonte would be to emulate a feat achieved by Canico Resources when it sold its Onca Puma project just down the road from Araguaia.
Having spent US$20 million acquiring Onca Puma and the same again developing it, the Canadian outfit received US$750 million when it sold the mine five years ago.
Little surprise then that Horizonte is speaking to Paradigm, the broker that managed the Onca Puma sale, as the British miner plots a Toronto Stock Exchange listing planned for the first half of next year.
Away from nickel and Horizonte’s interests are focused on gold.
Its joint venture with AngloGold is a “generative programme” that will piggyback on Horizonte’s “technical and operational experience in Brazil”, Martin says.
Anglo has pledged to spend US$5.3 million over the next three years, with the junior partner receiving 49 per cent of any project the pair uncover.
To give you an idea of scale of Anglo’s ambitions it will hand complete ownership to Horizonte of any project that is below a minimum threshold of two million ounces.
“So it is a no cost maximum exposure exploration programme. It also gives Horizonte a rubber stamp of approval from a top tier major miner,” Martin told Proactive Investors.
Separately, the pair have another deal, this time worth US$4.5 million, to develop the Falcao gold anomaly. The earn-in will give Anglo 51 per cent of Falcao.
“Again Falcao is in Carajas and was discovered by BHP Billiton,” Martin says. “The gold anomaly is big – it is about 5.5 kilometres long by 3 kilometres wide.
“BHP did a very quick and wide spaced RC drill programme and each hole was about 1.2 kilometres apart. It was a wide spaced grid.
“One of those lines of holes ran anomalous gold from surface down to the bottom and some of the other holes had very high grades of gold in them.
“That all happened when BHP was pulling out gold in 2004. We had an access problem there too for 18 months.
“Anglo has pushed very hard to partner up on this project.”
There is just one more project – a 300 square kilometre block covering part of the Greenstone Belt in Carajas which has historic gold production.
There the company is partnered with Troy Resources, which is expected to acquire 100 per cent of the project after spending the required US$2.8 million developing it.
Horizonte would then earn a royalty after the mine goes into production, which offers the prospect of cash coming into the business – rather than leaking out of it.
The last time it updated the market, the group had around £5 million in the bank – enough to meet its near-term requirements, though it will inevitably need to replenish those coffers.
It may look to do this when the company is listed on the TSX, Martin says, although nothing as yet is set in stone.
A quote in Canada could help trigger a re-rating of the stock. That of course will depend on investors recognising the true value of Araguaia.
However, one thing the Canadians understand is the mining in Latin America.
There are around 40 firms listed on the exchange in Toronto that are based in the region. Compare that with the UK where there is probably a handful at most.
However Martin doesn’t see the listing as a panacea. He says: “We are very comfortable and we like being in London.
“But I think the TSX will be a complementary marketplace to be in.
“People look at Canada being the magical fix. We don’t believe that for one moment.
“But for all those reasons talked about it would seem to be a logical market to have exposure to.
“I would like to see us initially valued at 3 to 4 cents a pound (of nickel) in the ground and see this figure increase as we move towards Feasibility.”
Crucial to any share price appreciation will be the newsflow, which is expected to move up a notch in the next few months.
A lot of it will revolve around Araguaia, where an ambitious 8-10,000 metre drilling programme is already underway.
The 100 million tonnes already defined lies in six areas within the enlarged project, with another six to drill.
This initial programme will be completed in Q1with the first data expected in March, Martin says.
“From the first stage we are aiming for 60-70 million tonnes. We will carry on drilling with stage two results out at the end of the second quarter, which is the 100 million tonne target,” he explains.
“Within the 100m tonnes we will aim for 30-40 per cent resource indicated and that will be the high grade zones at over 1.5pc. That’s the target.”
Partnering with the likes of AngloGold and Teck has an important upside: is it has plucked Horizonte from the ranks of the sub-£10 million also-rans of AIM and put it on the radar screen for many more fund managers.
Currently its market capitalisation is £35 million with shares up more than 85 per cent in the year to date.
“Getting out of the lower quartile in this way has been crucial,” Martin concludes.
“If we can bring the valuation up to the peer group average then that would have an enormous impact on our market cap.
“That takes us to a completely different place. It is all about delivering the milestones, adding to the value and working our way up the value curve
RIO DE JANEIRO -(Dow Jones)- Brazilian mining giant Vale SA (VALE, VALE5.BR) said Thursday that protesters closed the Carajas railroad Wednesday for more than five hours and continue to hold six workers hostage.
The Estrada de Ferro Carajas, which links Vale's massive Carajas mine with the port city of Sao Luis in northern Brazil, was invaded Wednesday by the Guajajara tribe, Vale said. While the railroad was opened to traffic, tribe members continued to threaten further invasions, Vale said.
The company did not have any information about possible supply disruptions related to the attack, a Vale spokeswoman said. Vale is the world's largest producer and exporter of iron ore and blast-furnace pellets.
Vale has become a favored target of local Indian tribes and other groups in recent years, with protesters closing mine facilities and key railroad lines in an effort to draw attention to their plights. The railroad lines transport iron ore from mines in remote regions to ports on Brazil's coastline.
The company's locally traded shares were unaffected by the latest protest, advancing 0.8% to 49.10 Brazilian reais ($29.49) in early afternoon trade on the Sao Paulo Stock Exchange.
MRS Logística awards CBTC contract
03 March 2011
BRAZIL: MRS Logística has awarded a US$165m contract for the design and installation of communications-based train control across its 1 674 route-km network by the end of 2013.
Operating in the states of Rio de Janeiro, Minas Gerais and São Paulo, the railway handles substantial flows of iron ore, steel and cement, reporting a 12% increase in traffic to more than 140 million tonnes in 2010.
The company began work in 2006 on the development of its own Integrated Operations Automation & Control System (SIACO), in conjunction with Alstom, EADS and Accenture-Atan. Using many common elements with ETCS Level 2, this was intstalled on a 35 km pilot line between Pombal and Guaíba in early 2009. At that stage the intention was that SIACO would be rolled out across the entire network before the end of 2010.
Under the contract announced on March 2, Wabtec’s recently-acquired signal engineering subsidiary Xorail will provide turnkey project management, design and install signalling, communications and train dispatching equipment; and fit on-board electronics to 500 locomotives and 50 auxiliary vehicles.
MRS chief executive Eduardo Parente said ‘this major investment will improve the safety of our operations and is an essential part of meeting increased demand. Ours is a highly complex network due to the density of the track and geography of the region, which we believe makes this train control project a first for freight rail operations around the world. After a lengthy bidding process, we are convinced that Xorail is uniquely positioned to deliver a solution.’
Wabtec President & CEO Albert J Neupaver described Xorail’s entry into the Brazilian train control market as ‘a significant expansion of Wabtec’s presence in the region’. The company opened a service centre at MRS Logistica’s Belo Horizonte maintenance shop in 2009 to provide aftermarket services, and recently acquired Brazilian brake component supplier Adantech.
Railway to Brazil grain port due to reopen Wed
Wed Mar 16, 2011 1:46pm EDT
* Railway supplies port with about 30 pct of grain
* Last flooded segment of railway expected cleared today
* Railway to help supply port with grain while road is out
SAO PAULO, March 16 (Reuters) - The railway system that hauls soybeans, meal, corn and other goods to Brazil's No. 2 port of Paranagua will reopen Wednesday, its operator said.
This would allow the flow of grains to the port to resume while the main road remains damaged.
Rains washed out several bridges over the weekend on BR-277, the main highway leading to and from the port, and stopped the movement of railway traffic as well, leaving the port with no way to replenish its silos with soy, corn, meal and sugar for exports.
The America Latina Logistica (ALLL3.SA) railway that transport about 30 percent of all soybean coming into the port cleared an important segment of its line over the Serra do Mar mountains leading down to the port Wednesday morning.
Flooding at the final leg of the track closest to the port is expected to clear this afternoon, when railway cars should begin to deliver soymeal principally to the port, ALL said.
Trucks are lined up and waiting about 61 kilometers from the port above the Serra do Mar pass. They are passing at an extremely limited pace down BR-277.
One of the segments of the highway had three of its four lanes wiped out due to rains and mudslides. Trucks carrying grains to the port are alternating with up coming traffic over the single lane of the road. [ID:nN15277354]
The loading of grain ships continues at the port but new shipments of soy, meal and corn to the port will be critical in the coming days to keep silos filled with enough grain to supply waiting ships with cargo to export.
The governor of Parana state has requested federal assistance in finding a solution to reopen traffic on BR-277. Ecovia, the company that operates the highway concession, estimates that repair of the bridges on the road could take 180 days. (Reporting by Fabiola Gomes; Writing by Reese Ewing; Editing by John Picinich)
Engexata Engenharia has won a R$38·7m 18-month contract to build two light rail routes totalling 12·5 km with 11 stations in Sobral. Bom Sinal is supplying five two-car trains.
Vale has awarded Uzminias contracts to build six bridges for the first phase of the Carajás railway project.
Brazil's transport infrastructure department (DNIT) is planning railroad construction projects worth 98.7mn reais (US$60.5mn) in five states.
Most of the work involves building bypasses on municipal rail networks, according to the spokesperson.
The city of Divinópolis Minas Gerais state will receive 82.9mn reais, while Três Lagoas in Mato Grosso do Sul state will receive work budgeted at 25mn reais. São Francisco do Sul and Joinville, both in Santa Catarina state, have been allocated 15.9mn reais and 14.3mn reais respectively.
In the south, four projects will be carried out in Paraná state, the official said.
DNIT has earmarked 8mn reais for railroad construction in Apucarana and 1mn reais to alter a stretch in the city of Rolândia. In addition, 3.55mn-real and 2.8mn-real initiatives are being carried out in the city of Maringá.
In Rio de Janeiro state, 40mn reais will be spent to upgrade the municipal railroad in Barra Mansa city.
Finally, 3.4mn reais will be used for expropriation to make way for the Transnordestina railway being built in the northeast of the country.
DNIT plans to invest some 596mn reais in railways during 2011
Brazilian railway operator América Latina Logística (ALL) (Bovespa: ALLL11) will start construction this year on a 730mn-real (US$453mn) intermodal terminal in Brazil's midwestern state of Mato Grosso.
Located in the city of Rondonópolis, the complex will have capacity to handle 15Mt/y and may reach 30Mt/y on strong demand, the company said in a release.
Construction is scheduled to start later this year, once the necessary licenses are obtained. Work is expected to wrap by 2H12, when ALL's new railroad from Rondonópolis is due to open.
Expected to handle demand for the next 25 years, the complex will be focused on transporting grains, fuel, fertilizers, cotton, refrigerated products and timber, among others.
Around 30 companies are expected to set up facilities at the terminal, which will be the largest of its kind in Brazil, covering 400ha, according to the release.
ALL is Latin America's largest independent logistics company, operating in Brazil, Argentina, Chile and Uruguay. It owns 21,300Km of rail tracks, 1,095 locomotives, 31,650 railcars, 700 highway vehicles, several distribution centers and warehousing facilities.