Brazil’s Vale (NYSE:VALE), the world’s biggest iron ore producer, has received board approval for a long-sought expansion of the already massive S11D iron ore mine, in the northern state of Pará.
The $1.5 billion Serra Sul 120 project aims to increase the S11D mine-plant capacity by 20 million tonnes to 120 million tonnes of iron ore a year. Once completed, it will increase output at Vale’s North System to 260 million tonnes a year.
The Serra Sul 120 project will increase S11D mine-plant capacity by 20Mtpa.
The Rio de Janeiro-based mining giant said completion of Serra Sul 120 is expected in the first half of 2024.
The project includes the opening of new mining areas, the duplication of the long-distance belt conveyor (TCLD), which will require a $385 million investment. It also involves implementing new processing lines at the plant and expanding storage areas, Vale said.
Courtesy of VALE SA.
The company noted that bringing forward the multi-year project and the ongoing impact from the coronavirus pandemic means the company will have to revise guidance on investments for 2021 and the 2022-2024 period.
More to come…
