MRS Logística, MMX ink rail freight contract

Thursday, December 29, 2011

Brazilian rail operator MRS Logística has signed a contract to provide freight services for local mining and metals firm MMX (Bovespa: MMXM3).

The agreement entails transporting iron ore from the iron quadrilateral of southeastern Minas Gerais state to Sudeste port in Rio de Janeiro state's Itaguaí city, according to an MMX release.

Under the contract, MRS Logística is required to transport up to 36Mt/y of iron ore through 2026, with a flexibility of up to 10% more or 15% less.

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A tariff of 26.5 reais (US$14.2) per wet ton will be charged and readjusted annually by a formula that includes the IGP-DI price index and the price of diesel. Other adjustments are also possible under conditions established in the contract.

The annual contracted tonnage is subject to a take-or-pay clause based on 80% of the volume, the release said.