ALL America Latina Logistica SA, Latin America’s largest railroad company, agreed to create a new company to tap an iron-ore project in Brazil together with TPI - Triunfo Participacoes e Investimentos SA and Vetorial Participacoes SA.
The companies will create a unit called Vetria Mineracao SA to develop an iron-ore mine in Corumba, in the Brazilian central-west state of Mato Grosso do Sul, according to a regulatory filing today. Vetria is expected to invest 7.6 billion reais ($4.07 billion) in the project, which includes the expansion of a mine, the upgrade of a railway line and the construction of a port in Santos, the filing added.
The investment will boost the annual capacity of the mine to as much as 27.5 million metric tons of iron ore from a current capacity of one million ton, the companies said in the filing, which was released after the closing of the market.
ALL will hold 50.38 percent of the shares of Vetria and TPI Triunfo will hold 15.79 percent. The rest will be held by Vetorial, according to the filing.
ALL fell 2 percent to 9.15 reais in Sao Paulo today, extending its decline during 2011 to 39 percent. TPI Triunfo dropped 1.1 percent to 9.35 reais today.