Vale reaches $1.8 billion railway concessions deal
The company reached an agreement with local authorities to pay up to some 11 billion reais to renegotiate two railway concession contracts.
Mineral Resources Ltd. said its investigation into undeclared payments made to companies linked to its tycoon founder, Chris Ellison, would be completed by next week.
Ellison, who is managing director and a major shareholder, said the payments pre-dated the company’s 2006 listing, and came from overseas entities he and his business partners operated, and which sold mining equipment and parts. He did not declare the income from the supply contracts.
“There has been considerable media coverage since Oct. 19 and the board’s investigation has evolved to respond to statements that do not accord with the company’s understanding of the facts,” Mineral Resources said in a corporate statement Monday.
The company’s shares slumped 26% last week after a report that Ellison had struck a deal with the Australian Taxation Office to repay owed money.
(By Paul-Alain Hunt)
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