Vale to Raise Carajas Iron Ore Output With $12 Billion Investment
Brazilian miner Vale said on Friday it expects to raise iron ore production in its main complex Carajas, in northern Brazil, by nearly 13% through 2030 as part of a 70 billion real ($12.26 billion) investment plan in the region.
Brazil’s presidential palace announced the investment on Wednesday, and Vale unveiled details on Friday at an event attended by Brazil’s President Luiz Inacio Lula da Silva.
Vale is among the world’s largest iron ore producers. Carajas, in Brazil’s Para state, is the miner’s main output complex for the steelmaking ingredient.
In Carajas, Vale produced 177.5 million metric tons of iron ore last year, more than half its total output of the commodity in the period.
Vale said on Friday it expects iron ore production in the complex to reach 200 million tons per year by 2030, with the boost coming from moves such as the expansion of its Serra Sul mine.
At the event, Lula said the election of Gustavo Pimenta as Vale’s chief executive last year was an opportunity to realign Vale’s interests with Brazil’s interests.
He and his cabinet members had complained in the past about Vale’s lack of investment in Brazil and delays in repair after a 2015 dam collapse. An agreement was ultimately sealed in October.
“It is important that Vale takes into account that it has to distribute dividends to shareholders,” Lula said. “But it is also important that it takes into account that it has to invest in order to grow, to generate jobs”.
Minister for Mines and Energy Alexandre Silveira said the government has seen signs of improvement under Vale’s new management.
Apart from iron ore, Vale said it sees its copper production at Carajas growing by 32% to about 350,000 tons by 2030 with the investment plan, dubbed “New Carajas”.
The company said the investments toward the plan are in line with its guidance.
