Vale plans massive expansion of iron ore mine capacity
Under pressure from the Brazilian government to increase capital investment, mining giant Vale has detailed plans for a massive expansion of its iron ore operations in the next five years. Investments of over US$18bn are planned in concentrates alone – additional sums will be invested in pellets, non-ferrous metals and steel. If approved, the projects will add at least 176m tonnes/year to the miner's capacity in iron ore concentrates.
In a statement sent to Steel Business Briefing, Vale says its Carajás mine may have its capacity increased by 40% by the end of 2012. This will happen in two stages: 10m t/y will be added by next year through marginal investments of US$290m; a second stage costing US$2.5bn will add further 30m t/y by mid-2012. Thus, Carajás will reach 140m t/y overall.
Also in the northern state of Pará, Vale is studying a new deposit – Carajás Serra Sul. That will be developed at a cost of about US$11.3bn, although this still depends on board approval. This project could produce up to 90m t/y by late-2013.
However, not all investments are concentrated in the country's northern regions; Vale is planning to develop and expand mines in the southeastern state of Minas Gerais as well. It expects to invest further US$3.6bn in two brownfield projects – Conceição and Vargem Grande – and one greenfield area – Apolo. Altogether, they might increase Vale's capacity by 46m t/y, SBB notes.
Under pressure from the Brazilian government to increase capital investment, mining giant Vale has detailed plans for a massive expansion of its iron ore operations in the next five years. Investments of over US$18bn are planned in concentrates alone – additional sums will be invested in pellets, non-ferrous metals and steel. If approved, the projects will add at least 176m tonnes/year to the miner's capacity in iron ore concentrates.
In a statement sent to Steel Business Briefing, Vale says its Carajás mine may have its capacity increased by 40% by the end of 2012. This will happen in two stages: 10m t/y will be added by next year through marginal investments of US$290m; a second stage costing US$2.5bn will add further 30m t/y by mid-2012. Thus, Carajás will reach 140m t/y overall.
Also in the northern state of Pará, Vale is studying a new deposit – Carajás Serra Sul. That will be developed at a cost of about US$11.3bn, although this still depends on board approval. This project could produce up to 90m t/y by late-2013.
However, not all investments are concentrated in the country's northern regions; Vale is planning to develop and expand mines in the southeastern state of Minas Gerais as well. It expects to invest further US$3.6bn in two brownfield projects – Conceição and Vargem Grande – and one greenfield area – Apolo. Altogether, they might increase Vale's capacity by 46m t/y, SBB notes.
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