Vale sells transport services for Usiminas steel
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 centers, and to clients in Belo Horizonte, in Minas Gerais state, and in Sao Paulo state.
(Writing by Reese Ewing; Editing by David Gregorio)
