Posted on 08 Jan 2020
The state of Minas Gerais in Brazil has signed 18 protocols of intent for private investments in the region with large companies such as Vale, Usiminas, Vallourec and Taquaril Mineração (Tamisa), among others. The total estimated investment in new projects and expansion of production units should reach BRL 14.7 billion ($3.62 billion), Kallanish learns from the authority.
Vale has already begun investing BRL $1.24 billion for the modernisation of its Brucutu mine. The site, which is the largest in Minas Gerais with an annual capacity of 30 million tonnes of iron ore, will create more than 1,950 jobs. The new tailings dam should be operational as from 2023. Vale foresees that its BRL 99.8 million investment in the Sondagem project to define the potential of the iron extraction in Almas Norte, Jacutinga and Morro da Adriana.
The Usiminas project, meanwhile, involves the digitalisation and production improvements for its steel producing plants, as well as the installation of the tailings filtration system and dry stacking for its mining unit. Usiminas total investment should surpass BRL 173.5m.
Vallourec plans to expand its Mina Pau Branco iron ore production capacity, adding 3.6mt to its 5.0mt annual output.
Tamisa, meanwhile, anticipates starting the extraction of iron ore in the municipalities of Nova Lima and Sabará as from 2021. The reserve approved by the Brazilian National Mining Agency (ANM) is over 1 billion tonnes and the planned investment is BRL 559m for the two phases of the project. The first involves the extraction of high-grade ore by dry processing, while the second phase includes production of lower grade ore, filtration and disposal, without the use of tailings dams. Construction work at the mine should start in first quarter of 2020.
Two other iron ore projects were confirmed by JMN Mineração. The miner is evaluating the improvement of its Baú Mine to produce 1.2 million tonnes/year of dry iron ore. The company also plans to implement wet processing to the Morro dos Coelhos Mine, that will allow it to increase its production to almost 3.4m t/y, according to the Minas Gerais government.
Source:Kallanish
