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November 15, 2018updated 19 Nov 2018 1:59pm

Vale in talks with officials for S11D iron ore mine expansion

Vale is reportedly engaged in discussions with the Brazilian authorities in relation to a proposed expansion of the $14bn S11D iron ore project, located in the Amazon rainforest.

Vale is reportedly engaged in discussions with the Brazilian authorities in relation to a proposed expansion of the $14bn S11D iron ore project, located in the Amazon rainforest.

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As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
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At a discussion with regulators, Vale talked about the possibility of expanding ore-processing infrastructure and the railway that is used to transport iron ore to port, Bloomberg reported citing Brazil federal environmental agency Ibama.

The multinational miner is pursuing the expansion to cater to growing Chinese demand for the low-cost, high-grade ore from the mine.

In September this year, Reuters reported that Vale is considering the project expansion, citing a statement from the company’s executive director Peter Poppinga at an industry conference in China.

With a capacity of 90 million tonnes, S11D is said to be the world’s largest open-pit mine producing iron ore, a key ingredient used in the manufacturing of steel.

The project is expected to reach capacity by 2020.

The Chinese government is imposing stringent environmental restrictions on domestic mineral production, which is forcing steel manufacturers in the country to focus on improving efficiency and lowering emissions.

It is in this backdrop that Vale is looking to strengthen its position as a leading producer of high-quality ore.

“Vale talked about the possibility of expanding ore-processing infrastructure and the railway that is used to transport iron ore.”

Initially, the company planned to reach and maintain production at the mine’s peak capacity, but has reconsidered its stance to meet Chinese demand for S11D’s ore.

Vale has not yet submitted a formal request to the regulators to approve the expansion plan.

The S11D mine, which is located in Canaã dos Carajás in the state of Para, was inaugurated in December 2016. The project produced around 22 million tonnes in its first year.

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Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
Enter your details here to receive your free Report.

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