Vale says it has received the required licences to start construction of the Capanema iron ore project in Minas Gerais, Brazil.
The project involves the development of the Capanema mine, acquisiion of new equipment, implementation of a long-distance 2.4 km conveyor belt (TCLD, pictured) and adjustments in the Timbopeba stockyards. This is expected to amount to multi-year investments of $495 million.
With the start-up expected for the second half of 2023, the project will have a production capacity by natural moisture (without tailings generation) of 18 Mt/y and, in the first years, will bring a net addition of 14 Mt/y of capacity to Vale with the “expedition” through the Timbopeba site, Vale said.
The start of the construction works of Capanema marks another important step in productive capacity buffers creation, ensuring greater operational flexibility with low capital intensity, Vale said.