Brazilian Mining: Vale Explores Mine Expansion and Samarco Resumes Amid Strong Chinese Demand

Written by Valdemar Medeiros

Published on 30/07/2020 at 18:17

Canaã dos Carajás, Pará (PA), Brasil, 13/06/2017 – Vista aérea do Complexo S11D Eliezer Batista. Sistema Truckless. As máquinas Belt (a maior) e BWM (escavadora) Foto: Ricardo Teles

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Mining Company Vale Seeks to Expand Its Mines and Samarco Is Expected to Restart in December

The Brazilian iron ore mining company Vale is submitting a proposal this month for the expansion board at the Northern System mining complex. The mining company expects to restart operations at the Samarco complex in December, executives said on Thursday (30). In statements to analysts following the company’s second-quarter results announcement, executives adopted an optimistic tone, saying that it is the only mining company capable of delivering 100 million tons of additional iron ore production to meet China’s strong demand for the main ingredient of steelmaking.

Vale Plans to Produce 400 Million Tons per Year Alongside Samarco

Undoubtedly, Vale plans to produce 400 million tons per year by the end of 2022, a target initially set for last year and delayed after the explosion of a company-owned dam in January 2019. The accident ultimately killed 270 people and forced the closure of the mines.

The mining company Vale achieved a new production record of iron ore at its main S11D complex in northern Brazil, an executive said. It expects its Itabira complex in southeastern Brazil, still troubled by cases of the new coronavirus, to resume full production in 2021.

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Vale Also Issued Some Warnings to Investors

Moreover, the pandemic in mining is expected to impact iron ore production by 10 million tons in 2020, executives said. Additional provisions regarding the nickel project in New Caledonia, currently under construction, are also expected. Furthermore, they stated that the restart of Samarco mining could take some time, meaning that operations will resume in early 2021.

Finally, on Wednesday night, the mining company Vale announced it was resuming dividend payments, which were halted after the dam burst in the Brazilian city of Brumadinho-MG last year.

Brazilian Mining: Vale Explores Mine Expansion and Samarco Resumes Amid Strong Chinese Demand

Mining Company Vale Seeks to Expand Its Mines and Samarco Is Expected to Restart in December

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