| Project Detail |
The North Region Transportation Infrastructure Improvement Project is proposed to help improve Vale’s capacity and ability to transport iron ore from its mines to its ports, and to global markets. The Project will help Vale strengthen its operational efficiency through improving its logistics infrastructure. The contents of the Project include upgrade of the transportation infrastructure capacity of Vale’s Northern System in the states of Pará and Maranhão, encompassing the Carajás Railway and the Ponta da Madeira Port Terminal.
- Environmental and Social Aspects
The positive impacts of the Project include: (i) increased freight throughput by 10 million tonnes per year after 2023; (ii) improved transportation infrastructure including port and railway in Vales Northern System; (iii) improved labor safety standards; (iv) enhanced economic development within Vale’s relevant sectors resulting from improved logistics and increased trading capacity; (v) contribution to Brazil’s efforts to achieve sustained and inclusive growth.
The Project is Category “A” in line with NDB’s Environment and Social Framework (ESF). Main environmental and social impacts are associated with a legally protected indigenous land (Terra Indígena Mãe Maria) due to high environmental and social sensitivity, and include impacts on biodiversity stemming from clearance of native vegetation and loss of habitats, noise from construction works and rolling stock, increased pressure on indigenous land and resources. Other significant E&S impacts are associated with the marine port terminal operations and include dust emissions, wastewater discharge, and occupational health & safety risks. E&S impact will be mitigated by adherence to the country system and Vale’s corporate E&S standards.
- Financials
The total cost of the Project is estimated to be USD 361 million. NDB will finance USD 300 million. The remaining balance will be financed by Vale.
FINANCIER AMOUNT (USD MILLION)
New Development Bank 300
Vale S.A. 61
- Implementation
The Project is to be implemented over five years. Procurement will be conducted in compliance with the national law and regulations, and meet the core principles of NDB’s policy. |
