Brazil’s mining industry plans to invest $40bn to develop new mining projects across the country over the next four years, according to the Brazilian Mining Institute (Ibram).
The mining industry will increase its investments from $32.5bn at present, Ibram’s president, Wilson Brumer, said on Sep 29, during a webinar titled “Mining: Financing and access to the capital market.”
Although Brumer did not disclose the number of mining projects to be developed or the break-up of the investments, some Brazilian miners such as Vale, Companhia Siderurgica Nacional (CSN), and Gerdau have recently indicated that they will increase their investments in the industry to expand the annual iron ore capacity.
Vale anticipates achieving an annual iron ore capacity of 400-450mn mt by intensifying production from all its operations, up from its current production capacity of 318mn mt per year.
CSN, on the other hand, has approved a new business plan for its mining unit Mineração to fund expansion projects. The Brazilian steelmaker plans to expand CSN Mineração output capacity to 108mn mt per year by 2033, from 33mn mt per year at present.
Gerdau is expanding its mining activities in Várzea do Lopes mining complex in Serra da Moeda, Minas Gerais. The expansion project is part of the company’s plan to invest BRL 1.5bn ($267.3mn) in the state. However, the project is awaiting approval from the Brazilian court before it can be implemented.
Brazil’s crude steel output rose by 6.5pc to 2.70mn mt in August, from 2.53mn mt, produced in the same month last year, according to the World Steel Association.