2023-05-19 13:12:14 ET
Vale ( NYSE: VALE ) is moving ahead with a $2.7B expansion at its S11D iron ore mine to add 30M metric tons of capacity, betting demand for high-grade ore will stay strong despite an overall softer market, Bloomberg reported Friday.
Work at the S11D mine is part of a plan to supply 260M tons from its northern operations in Brazil's Amazon by 2025, as Vale ( VALE ) seeks to stay ahead of the competition in a market where futures have slumped on waning demand from Chinese steel mills, but where richer ore commands a premium.
To offset the impact of mining in the Amazon, S11D uses electric excavators, conveyor belts rather than trucks and mobile crushers that cut diesel consumption by 60%, the report said .
At S11D, Vale ( VALE ) has been granted environmental permits to advance with works that include installing a second 9.5-km conveyor belt, a fourth processing plant, and duplicating part of a 900-km railroad that takes ore to the Ponta da Madeira port; a separate project, called Gelado, will turn mining waste into high-quality material.
More on Vale:
- Financial and valuation comparison to sector peers
- Analysis: Vale Is A Dividend King In The Making
- Stock price return: Down 14.5% YTD, down 14% in the past 12 months
For further details see:
Vale eyes $2.7B Amazon mining expansion in clean-steel bet - Bloomberg