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Vale will reveal a R$70 billion investment in the expansion of its operations in Carajás, Pará. With Lula in attendance, the announcement reinforces the mining company's position on the global stage and promises to transform the region's economy.
Next Friday (13), the president Luiz Inácio Lula da Silva will participate in the announcement of a R$70 billion investment by mining company Vale in the expansion of iron and copper operations in Carajás, in the municipality of Parauapebas, Pará.
According to a statement from the Planalto Palace, this contribution will be made between 2025 and 2030, in the project called “Novo Carajás”, included in the company's Northern System.
Carajás: Vale's largest mining complex
The Carajás region stands out as Vale's largest iron ore production complex.
In 2024, the area recorded a production of 177,5 million tons of this commodity, representing more than half of the company's total production for the year.
In addition to iron, Pará is home to the extraction of copper and nickel in the Sossego, Salobo and Onça Puma mines.
Relationship between Vale and the federal government
A Lula's presence at the event It occurs after a period of government criticism of Vale's previous management, including remarks by the president himself about the lack of dialogue with the mining company's previous administration.
Amid these disagreements, significant changes occurred in the company's leadership, signaling a closer relationship with the federal government.
In late January, Vale CEO Gustavo Pimenta highlighted a “huge convergence” between the mining company’s strategic projects and Brazil’s development agenda during his first official meeting with President Lula since taking over the company last October.
This statement suggests a harmony between company guidelines and government policies.
Ongoing projects in Carajás
Vale did not immediately comment on the investment mentioned by the Planalto Palace.
However, in its Q2024 67 financial report, the company reported 20% progress on the “Serra Sul +20 Mtpa” project in Carajás, which foresees an additional capacity of 2,84 million tons per year and an investment of US$XNUMX billion.
Other projects underway at the Carajás complex include the “Compact Crushing S11D”, with a capacity of 50 million tons and an investment of US$ 755 million, scheduled to start operations in the second half of 2026, and the “N3 – Serra Norte”, with a capacity of 6 million tons per year and scheduled to start in the second half of next year.
In addition, the company reported the almost complete completion of the “Northern System 240 Mtpa”, with an investment of US$ 774 million and a capacity of 10 million tons.
The mining company is also evaluating other projects in the Northern System, such as “S11C” and “Serra Norte N1/N2”, although the corresponding investments have not been disclosed.
Regarding “N1/N2”, Vale reported that the scope of the project is under review due to licensing restrictions.
Economic impact and challenges
The relationship between the government and Vale has been marked by tensions. In February 2024, President Lula criticized the mining company's management, demanding greater responsibility in both production and compensation payments.
He stated that “Vale cannot think that it owns Brazil” and that Brazilian companies need to align themselves with the government’s development model.
In August 2024, Lula once again criticized the privatization of Vale and the number of shareholders in the company, comparing it to a “dog with many owners”.
He highlighted the need for companies to be in tune with the Brazilian government's development thinking.
Expectations for the future of mining in Brazil
The appointment of Gustavo Pimenta as Vale's CEO was well received by the market. The company's shares rose 3% after the announcement.
Pimenta, who has served as CFO since 2021, took over the mining company at a time of transition and a search for greater alignment with government guidelines.
The investment of R$70 billion in the “Novo Carajás” project represents a significant investment in the mineral potential of Pará and reinforces Vale’s position as one of the main global mining companies.
The expectation is that this initiative will boost the local economy, generate jobs and strengthen the region's infrastructure, consolidating Brazil as a leader in the production of iron ore and copper.
With President Lula present at the announcement, the strategic importance of this investment for the country is evident.
The rapprochement between the government and Vale signals a new phase of cooperation, aiming at the sustainable and responsible development of mining in Brazil.
As the “Novo Carajás” project advances, it will be essential to closely monitor the developments and impacts of this initiative, ensuring that economic benefits are balanced with environmental preservation and the well-being of local communities.
