Reuters reported that Vale SA received court permission to resume work on a USD 4.1 billion transportation project needed to increase iron ore output, the world's second largest mining company said on Friday.

Vale in a statement said that a federal judge in the capital Brasilia struck down an injunction preventing work designed to nearly double the capacity of the Carajas Railway, which connects Vale's enormous Amazon mine complex at Carajas with the Port of Ponta da Madeira in Sao Luis, Brasil.

The railway carries nearly 10% of the world's sea-born iron ore exports of about 1 billion tonnes a year. The work will add a second track to the railway for its entire length.

Work on the railway was halted on August 6 after local human rights groups pointed out procedural shortcomings in the environmental licensing process.

Mr Mario Cesar Ribeiro a judge of the Federal Court, First Region in Brasilia said that "Currently, the suspension of construction could potentially be of more danger to the environment and society in general than if work was to be resumed.”

By expanding the line, Rio de Janeiro based Vale plans to raise the railway's capacity to 230 million tonnes per year from 130 million tonnes.

The expansion will generate over 8,000 construction jobs and another 1,400 jobs when complete in Brazil's states of Para and Maranhao in Brazil's north.

Source - Reuters

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