Brazilian iron ore and pellet producer Vale has received licenses to begin constructing the Capanema project in Santa Bárbara, Ouro Preto, and Itabirito in Southeast Minas Gerais, Brazil.
The $495mn development involves multi-year funding to resume operations at the iron ore mine, obtain new equipment, and execute a long-distance conveyor belt along with applying modifications in the Timbopeba stockyards, Vale said in a statement on Monday.
The undertaking will have the ability to produce 18mn mt of iron ore per year by natural moisture, not including tailings generation. In the initial stage, the mine will add about 14mn mt of net capacity per year to the miner through its Timbopeba site. Planned commencement is scheduled for the second half of 2023.
The Capanema project is also part of the company’s strategy to safeguard its production increase and recovery to offset the output delays following a dam break accident near its Brumhadino project in January, 2019.