By Jeffrey T. Lewis

SÃO PAULO--Brazilian iron-ore mining giant Vale SA said Wednesday it has agreed to extend contracts for concessions to operate two railroad lines that deliver ore to ports through 2057.

The company committed to spending an estimated $5.1 billion over that period on payments to the government for the concessions, expanding the use of the lines by passenger trains, improvements to ease shipments through urban areas and other items.

Vale is the world's biggest producer of iron ore, and much of its output is shipped to ports for export by the company's railroads. The extension of the concessions removes uncertainty about the continuity of those operations, Chief Executive Officer Eduardo Bartolomeo said in a statement.

One of the lines for which the company extended the concession runs 550 miles from the mine at Carajas in Pará state to the port of Ponta da Madeira in Maranhão state, transporting about 120 million metric tons of ore and 350,000 passengers per year. The company estimates its 2020 iron-ore output at about 300 million tons.

The other line is the 560-mile railroad that carries ore from mines in Minas Gerais to the port of Tubarão, in Espirito Santo state. The line also connects the capital of Minas Gerais, Belo Horizonte, to Espirito Santo's capital of Vitoria, and carries about 1 million passengers per year.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

12-16-20 0851ET