SAO PAULO (Reuters) -Brazilian miner Vale said on Thursday it will invest 67 billion reais ($12.36 billion) in its mining operations in Minas Gerais state by 2030, as it held a ceremony to mark the reopening of a key mine in the city of Ouro Preto. Most of the investments will be focused on solutions […]
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Brazil’s Vale reopens key mine, plans to invest $12 billion in Minas Gerais
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SAO PAULO (Reuters) -Brazilian miner Vale said on Thursday it will invest 67 billion reais ($12.36 billion) in its mining operations in Minas Gerais state by 2030, as it held a ceremony to mark the reopening of a key mine in the city of Ouro Preto.
Most of the investments will be focused on solutions to expand filtering and dry stacking of iron ore tailings, Vale said in a statement, as it seeks to reduce the use of dams in its local operations to 20% from 30%.
That has been a goal of the company after the fatal collapse of two tailing dams in Minas Gerais in 2015 and 2019, which jointly killed hundreds and caused severe environmental damage.
The miner on Thursday reopened its Capanema iron ore mine, which had been inactive for 22 years, and will now operate without using water in processing, generating no tailings and removing the need for dams.
“Capanema exemplifies the new phase of mining in Minas Gerais and reinforces our commitment to a more responsible production process,” Vale Chief Executive Gustavo Pimenta said.
Vale – one of the world’s largest iron ore producers – said it will invest in modernizing its five operational complexes, including improvements in geotechnical structure management at mines, connectivity, and fleet renewal in Minas Gerais state.
Capanema will add about 15 million metric tons per year to Vale’s iron ore output and help the company achieve its goal of producing between 340 million and 360 million tons next year, Vale added.
(Reporting by Roberto Samora; writing by Gabriel AraujoEditing by Rod Nickel)