Brazil Indigenous groups face injunction for blocking railroad Vale uses

Vale (NYSE: VALE) said Friday a judge granted an injunction against Indigenous peoples who’ve been blocking the Carajás Railroad that transports the company’s iron ore in Brazil. 

“Vale repudiates the arbitrary and illegal act practiced and informs that it has already obtained an injunction from the judiciary in favour of the full continuation of its activities,” Vale wrote in an email to The Northern Miner‘s sister publication Mining.com.

“The obligations assumed by the company, provided for in the current relationship agreement with the Indigenous members of the Mãe Maria Indigenous land, are up to date.”

The company didn’t state any impact on production. The rail line serves Vale’s Northern System of three mine complexes: Serra Sul, Serra Norte and Serra Leste.

Started Wednesday

Members of the Gavião Parkatejê from three villages in the Mãe Maria Indigenous land in the state of Pará began blocking the railroad on Wednesday.

According to Vale, the blockade prevents the daily movement of 1,800 people who use the passenger train during the high season and also stops cargo movement, including the fuel that supplies the south and southeast of Pará.

In 2022, after years of negotiations, the Indigenous people accepted an agreement to authorize a second rail line. The Carajás Railroad passes to the south of the Indigenous community.

At the Carajás/Serra Norte mineral complex in Parauapebas, Vale has the world’s largest open-pit iron ore mine. It produces 150 million tonnes of iron annually.

Shares in Vale gained 1.2% to US$10.84 apiece on Friday afternoon in New York, valuing the company at US$49.3 billion. They’ve traded in a 52-week range of US$10.64 to US$16.08.