Samarco announced its new billionaire investment focused on expanding its iron ore pellet capacity in 2025. The company aims to reach 60% of the capacity it had in 2015 and generate thousands of jobs.

The board of directors of Samarco, which has been in judicial recovery since 2021, last week approved an investment of BRL 1,3 billion for the company to double its production capacity of iron ore pellets until the first quarter of 2025. In this way, the company will reach 60% of the production capacity it had before the disruption of the Mariana dam (MG), in 2015.

Understand how Samarco's investments will be divided

Currently, the company operates with 30% of its total capacity, which is equivalent to approximately 9 million tons of iron ore pellets per year, using a concentrator and a pelletizing plant.

According to the company, the resource will be used in operational readiness and in the development of a new factory tailings filtration system for dry stacking of tailings. Of the total, R$ 560 million of Samarco's investment will be devoted to the filtering plant and improvements to the concentrator, with a focus on reducing the generation of ultrafines by 4%. Another R$753 million will be used to maintain assets. 

The company plans to reach a capacity of 18 million tons of iron ore pellets as early as 2025. To make this possible, it will use two concentrators and two factories for filtering the tailings at the Germano Complex (MG), a pipeline and two units pelletizing plant at the Ubu Complex (ES). All structures have corrective operational licensing, obtained in October 2019, according to Samarco.

Samarco intends to close 2023 with 9 million tons of iron ore pellets and generate 3 thousand jobs by 2023

Of the total investment approved, R$ 248 million will be invested this year and the rest will be approved during 2024. This amount will also be included in the total to be invested this year, which adds up to R$ 1,6 billion.

It is worth noting that this amount includes other areas that will receive contributions. Announced in June, the total investment of R$ 1,6 billion that will be made this year exceeds the value of R$ 1,3 billion last year. According to Samarco, the total forecast for 2023 also includes investments in the de-characterization of the Germano (MG) pit and dam, business sustainability, new jobs and innovation projects.

The company also informed that it maintains as its main focus the integral fulfillment of the repair, the safety of the structures and the folds of de-characterization of the Germano pit and dam, which are in an advanced stage.

In a note, Samarco added that, in parallel, the proximity of the approval of the judicial recovery plan will make it possible to optimize the company's capital structure, further improving its investment capacitys. Samarco expects to close 2023 with a production of 9 million tons of iron ore pellets and fines, which will represent a 10% increase in relation to last year's production.

Public Ministry requests conciliation hearing between Samarco and ES residents

O Federal Public Ministry asked the 4th Federal Civil and Agrarian Court of the Judiciary Subsection of Belo Horizonte to hold a conciliation hearing between residents of municipalities in Espírito Santo and Samarco, with its partners Vale and BHP Billiton.

The Association of Rural Producers and Craftsmen of Espírito Santo, the Association of Residents of the Colatina Velha neighborhood and the Association of Residents of Vila Lenira, in Colatina (ES) accuse Samarco of undue treatment of water collected from the Rio Doce for human consumption and ask compensation of R$ 120 billion for 585 thousand people.