Vale secures operating license for key iron ore project

Brazilian mining giant Vale announced that it has received an operating license for activities related to the Serra Sul +20 Mtpy Project mine, according the miner's latest press release on September 11. The project will add 20 million tonnes/year to Vale's iron ore production capacity once it is completed, Vale said.

The capacity expansion project centers on the S11D mine-plant located in the Serra Sul region of the Carajás National Forest, in the state of Pará, Brazil. Operating at a capacity of approximately 90 million t/y currently, the S11D mine is expected to reach a total capacity of 120 million t/y after the project is commissioned in the second half of 2026, Mysteel Global learns.

The S11D mine is recognized for its high-grade iron ore deposits and operational efficiency, according to Vale's Q2 production and sales report. Iron ore output from the mine during the first half of this year reached 40.3 million tonnes, rising by 8.2% on year, the report said.

Vale's efforts to expand capacity include developing new mining areas, installing a new semi-mobile crusher, duplicating the existing long-distance conveyor belt, and implementing new processing lines at the plant, according to the announcement.

Total investments for the project are estimated at $2.8 billion, and by the end of this July, the project had already reached 57% financial progress and 77% physical completion, Vale noted.

"Together, Serra Sul, Vargem Grande, and Capanema comprise Vale's set of strategic initiatives aimed at sustainably increasing production and enhancing the flexibility of its iron ore product portfolio," the company said.

Earlier this month, Vale just resumed operations at the Capanema iron ore mine in Ouro Preto city, Minas Gerais state, marking the end of its 22-year halt, as Mysteel Global reported.

Written by Irene Zhuang, zhuangailing@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com