Oct. 16 (Bloomberg) -- Vale SA, the world’s largest iron-ore producer, said it’s getting ready to start its $3.5 billion Carajas Additional 40 Mtpy project in Brazil as it expands production of the steelmaking raw material.
The Rio de Janeiro-based miner expects to get the operational license for the project this month, Paulo Horta, the company’s North Ferrous Director, told reporters during a visit to the iron-ore complex in the Northern state of Para yesterday.
Vale is investing $34 billion on approved iron-ore mining and logistics projects, seeking to boost its output capacity by 50 percent to 450 million metric tons by 2018, head of Ferrous & Strategy Jose Carlos Martins said Oct. 7. The company is developing the Serra Sul mine and logistics venture in Carajas, the world’s largest iron-ore complex, which at almost $20 billion is the industry’s most expensive project.
The $3.48 billion Carajas Additional 40 Mtpy project was 95 percent complete and scheduled to start operations during the second half of this year, Vale said Aug. 7. The project consists of the construction of an iron-ore dry processing plant, which will have an estimated nominal output capacity of 40 million metric tons a year, it said.
Vale has dropped 21 percent this year, compared with a 8.2 percent decline for Brazil’s benchmark Ibovespa index. The stock rose 0.3 percent to 32.31 reais at the close in Sao Paulo today.
To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at email@example.com
To contact the editor responsible for this story: James Attwood at firstname.lastname@example.org