The Brazilian group Cedro Participações has asked the transportation authority ANTT for an authorization to build a railroad linking the cities of São Joaquim das Bicas and Itaúna, in the southeastern state of Minas Gerais.
The 32.4 km railroad will cross a mining complex covering five iron ore miners, which use transportation by road for their product to MRS Logística, the railroad that links the region to ports in the states of Rio de Janeiro and São Paulo.
The miners are Ipê, ArcelorMittal Mineração, Musa (Usiminas), Comisa and Minerita.
According to the local press, the railroad will require investments estimated at $356 million, and it will replace the 2,500 trucks that currently transport 25 million mt of iron ore each year from the mines to the MRS railroad.
The construction of the railroad is expected to last for two years, counting from the date ANTT issues the authorization.