Vale Signs Rail Concession Accord For Argentine Potash Mine
Published Friday, 27th August 2010 05:10 am - © 2010 Dow Jones
RIO DE JANEIRO -(Dow Jones)- Vale S.A. (VALE, VALE5.BR) said it signed an agreement with Ferrosur Roca S.A., an Argentine railroad operator, for transference of the concession for a 756-kilometer railroad stretch to serve its Rio Colorado potash project in Argentina.
The railroad connects Zapala, in the province of Neuquen, to General Cerri, in the province of Buenos Aires, Vale said in a statement Thursday.
Gaining the concession will provide part of the logistics infrastructure needed for the Rio Colorado project, which is designed initially to produce 2.4 million metric tons a year of potash for the fertilizer industry with the potential for a future expansion to 4.35 million tons a year, Vale said.
The project is still subject to the approval of Vale's board of directors, the company said.