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Vale Received Approval from the Board for an Expansion of the Already Huge S11D Iron Ore Mine in the State of Pará, in the North of the Country
The Serra Sul 120 project from Vale Mineradora, costing $1.5 billion, aims to increase the capacity of the S11D mine plant by 20 million tons to 120 million tons of iron ore per year. Once completed, it will increase Vale’s North System production to 260 million tons per year.
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Vale Mineradora Based in Rio de Janeiro Says Completion of Serra Sul 120 is Expected in the First Half of 2024
The project includes opening new mining areas, doubling the long-distance conveyor belt (TCLD), which will require an investment of $385 million. It also involves the implementation of new processing lines at the plant and the expansion of storage areas, said Vale Mineradora.
Furthermore, Vale noted that accelerating the multi-year project and the ongoing impact of the coronavirus pandemic means the company will have to revise its investment guidance for 2021 and the period 2022-2024.
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Previous Tragedies at Vale and the Pandemic
Thus, Vale Mineradora is still recovering from the collapse of a waste dam at one of its mines, which killed 270 people last year. The disaster forced the company to suspend operations and reduce production at several of its mines. The iron ore producer initially estimated that it would take two to three years to reach the annual production target of 400 million tons that it had originally set for 2019.
The coronavirus pandemic, however, further impacted Vale’s plans, with the company lowering its annual projection on more than one occasion. Vale now expects to produce between 310 million and 330 million tons of iron ore fines in 2020, down from the previously forecasted 340 million to 355 million tons.
In summary, S11D is the world’s highest grade iron ore mine, allowing Vale to use waterless processing technology to screen and sift the ore before placing it in giant stockpiles. This means there is no need for a waste dam to store the waste.
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