Location: Botany NSW
Vale SA (VALE3), Brazil’s biggest exporter, said it will reopen operations tomorrow at a railroad that transports production from the world’s largest iron-ore mine after an accident lowered shipments by 300,000 metric tons.
Traffic at the Carajas railroad in northern Brazil will resume and the expected iron-ore shipment loss is “relatively small,” Vale said in a regulatory filing today. The company may be able to offset the loss by increasing shipments from other ports such as Tubarao, Ilha de Guaiba and Itaguai, it said.
“Vale has taken all the necessary measures to restore the railway traffic,” the company said.
Vale shut the Carajas railroad after part of a bridge it was building next to the railroad collapsed March 16, the Rio de Janeiro-based company said in an e-mailed statement over the weekend. Seven workers suffered “light injuries” during the accident, the Rio de Janeiro-based company said.
The railroad links the Carajas mine with the Ponta da Madeira port in Brazil’s northeastern state of Maranhao, from which Vale exports iron ore to clients as far away as Asia. Vale produced a record 109.8 million metric tons of iron ore in Carajas last year, or about 34 percent of its total output, according to a Feb. 15 filing.
“Vale has been restocking at its own ports during the past couple of quarters, which could offset potential losses,” Barclays Plc analysts led by Leonardo Correa in Sao Paulo said today in a note to clients.
Vale also ships manganese, copper, fuels and coal along the 892-kilometer (554-mile) line, which uses the world’s largest train, made up of four locomotives and 330 cars, according to the company’s website. Carajas hosts the Sossego mine, Vale’s main source of copper production.
The railroad operates a passenger train that transports about 1,300 people daily.
Vale rose 0.6 percent to 41.14 reais at 1:08 p.m. in Sao Paulo. Iron ore for immediate delivery was unchanged at $144.70 a ton today, according to a price index compiled by The Steel Index Ltd.