The giant Brazilian company Vale announced in Sao Paulo Wednesday that it will invest $395 million to produce biodiesel from palm oil to fuel its Carajas mine and railway operations.
Vale, which claims to be the world's largest iron oreproducer, says it plans eventually to use a 20% biodiesel blend in the fuel consumed by its railway locomotives and large equipment servicing the company's main iron ore mine.
In a joint venture with biodiesel producer Biopalma da Amazonia, Vale plans an initial investment of $40 million in 2009. The switch to the new fuel blend will begin 2014. Vale expects savings of $150 million a year from the use of palm oil biodiesel.