en.Wedoany.com Reported - Vale announced the renewal of its iron ore rail transport contract with MRS Logística. The new agreement, disclosed to the market on Wednesday, has a 15-year term and a nominal value of approximately 51.3 billion reais.

The transaction was disclosed in accordance with Brazilian Securities and Exchange Commission (CVM) regulations, as MRS Logística is an investee of Vale, making it a related-party transaction. The contract will take effect in December 2026 and remain valid until December 2041. During this period, MRS will be responsible for transporting iron ore, pellets, and other derivatives between loading terminals in Minas Gerais and Rio de Janeiro state.

The agreement retains the so-called take-or-pay clause. Under this mechanism, Vale guarantees MRS payment of at least 85% of the estimated annual revenue, based on the transport plan approved for each fiscal year. The new contract also incorporates rules to increase flexibility in transport volumes, aiming to reduce minimum payment risks during periods of lower production.

The document stipulates conditions for contract termination, including default, bankruptcy, and judicial or extrajudicial reorganization. If the contract is terminated at Vale's initiative, the company may be required to pay compensatory penalties corresponding to investments made by MRS to fulfill its contractual obligations. Vale stated that the negotiated pricing model will adjust with changes in operating costs over the contract's term, always remaining aligned with the primary inflation index.