RIO DE JANEIRO, Aug. 6 (Xinhua) -- A Brazilian court Monday ruled to suspend a railway expansion project of Vale on the grounds that it might endanger native communities.

The 4.1-billion-U.S. dollar plan to double the Carajas Railway in northeastern Maranhao state may threaten the living conditions of indigenous quilombo communities, the court said.

Judge Ricardo Felipe Rodrigues Macieira ordered Vale, Brazil's largest private company and leading iron ore producer, to carry out an extensive environmental impact survey, particularly concerning the well-being of communities near the railway.

The report must include possible compensation for the communities and be written in a manner accessible to the general public, the judge added.

Vale said it would appeal the decision, saying the project has "rigorously" met environmental guidelines and passed the environmental licensing process.

The expansion of the 892 km Carajas Railway would increase the annual transport capacity from 130 million to 230 million tons. The line is crucial for Vale to haul its increasing iron ore production in the region to the coast. Enditem

Go to Forum >>0 Comment(s)