Vale obtains license for largest iron ore development in its history

Vale obtains license for largest iron ore development in its history

An iron ore plant funded by Brazilian mining company Vale (BVMF: VALE5) has finally obtained an operating license, 15 years after plans were first devised.

The S11D mine is situated at Canaã dos Carajás in the state of Pará, north-western Brazil, and represents the largest private investment in the country for over a decade.

A total of US$14.3 billion will be invested in the project by Vale, which covers the fees involved in constructing an iron mine, processing site and a new 101 km railway line.

After initial technical and feasibility studies began in 2001, the plant will now finally commence commercial operations in January 2017.

The project remains Vale’s largest ever iron ore development in its history, and will add 90 million tonnes per year to the company’s overall mining capacity.

Murilo Ferreira, CEO of Vale said: “For me, seeing the completion of S11D is much more than just witnessing a new landmark in the mining industry. More than an enterprise embodying the latest technology, low cost and high productivity, the S11D portrays Vale’s ability to make things happen.”

@RGNonline