Vale plans to raise iron ore output at Carajas by nearly 13% by 2030 with a 70 billion reais ($12.26 billion) investment. The expansion aims to increase production from 177.5 million metric tons to 200 million tons annually, alongside a 32% increase in copper production. Government officials emphasize the need for Vale to balance shareholder returns with national investment goals.
Brazilian mining company Vale is set to enhance iron ore production in the Carajas complex by nearly 13% by 2030, as part of a significant investment plan totaling 70 billion reais (approximately $12.26 billion). The company’s announcement follows a strategic investment unveiled at an event attended by Brazil’s President Luiz Inacio Lula da Silva, highlighting the government’s support for local industry growth.
Carajas, located in the northern state of Para, serves as Vale’s primary iron ore output facility. The company produced 177.5 million metric tons last year, representing over half of its overall iron ore output. Vale is targeting an increase to 200 million tons annually by 2030, primarily through expanding the Serra Sul mine, a vital part of their operations.
During the event, President Lula emphasized the importance of aligning Vale’s business strategies with national interests. He asserted the necessity for Vale to balance shareholder dividends with investments aimed at fostering growth and job creation. Lula had previously expressed concerns regarding Vale’s investment pace and commitment to addressing past operational issues, including the lingering effects of a dam collapse from 2015.
Minister for Mines and Energy Alexandre Silveira acknowledged positive signs of improvement under Vale’s new leadership, which is set to rejuvenate the company’s investment strategies. In addition to iron ore, Vale aims to boost its copper production at Carajas by 32%, targeting around 350,000 tons by 2030 as part of its “New Carajas” plan.
Vale’s investment plan presents a robust strategy for increasing iron ore and copper production in Brazil, demonstrating a commitment to align with national interests and contribute to economic growth. The expected rise in output through infrastructure expansions highlights the company’s proactive approach, responding to past criticisms while reinforcing its position as a global leader in ore production.
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