Vale has officially opened the Capanema mine in Ouro Preto, Minas Gerais, Brazil, and announced plans to invest 67bn reais ($12.2bn) through 2030.
This investment will facilitate safer, more innovative production methods, focusing on sustainability and technology across five operational complexes in Minas Gerais.
The reactivation of the Capanema mine, which had been dormant for 22 years, involved an investment of around 5.2bn reais.
This included modernising facilities and integrating operations with nearby mines to enhance efficiency and minimise environmental impact.
Vale also introduced five autonomous off-road trucks and implemented circular mining practices. One such practice is the reprocessing of iron ore from an old waste pile.
The construction phase spanned five years, engaging around 40 companies and more than 6,000 workers at its peak. The mine provides jobs for 800 individuals.
The Capanema mine's operations will incorporate natural moisture-based mineral processing, which does not produce tailings, thus negating the need for a dam.
The mine is expected to contribute approximately 15 million tonnes per annum (mtpa) to Vale's annual iron ore production, aligning with the company's projected output of 340 million tonnes (mt) to 360mt by 2026.
Vale CEO Gustavo Pimenta said: “Capanema exemplifies the new phase of mining in Minas Gerais and reinforces our commitment to a more responsible production process, minimally invasive and with technology and innovation applied to better utilise mineral resources and support decarbonisation initiatives.”
Vale's commitment to Minas Gerais is part of its 2030 strategy, which focuses on offering a diversified iron ore portfolio driven by operational enhancements.
These investments are expected to generate substantial economic benefits including 440m reais in annual royalties and 3bn reais in yearly salaries for around 60,000 professionals, encompassing both direct and contracted employees.
A significant portion of Vale's investments will be allocated to tailings filtering and dry stacking solutions, aiming to reduce the use of dams in Minas Gerais from 30% to 20%.
Additionally, the investments will support the decommissioning of dams and dikes under the Upstream Structure Decharacterisation Programme, which has progressed by around 60% since 2019.
Of the 13 structures remaining, eight are currently undergoing decharacterisation. All inactive structures are under continuous surveillance by Vale's Geotechnical Monitoring Centres.
Vale executive vice-president and chief technical officer Rafael Bittar said: “We continue to advance in the management of our geotechnical structures, improving controls and technical studies and developing cutting-edge technology in partnership with our suppliers to eliminate our upstream dams, with an absolute focus on the safety of our employees, neighbouring communities and environmental protection. This is an essential step toward safer mining aligned with society’s expectations.”
Earlier in August, BHP Group and Vale proposed a $1.4bn settlement to resolve a class action lawsuit in the UK related to the 2015 Mariana dam failure in Brazil.
The Samarco joint venture, operated by both companies, was responsible for the dam, which has resulted in significant legal challenges. The lawsuit carries estimated potential damages of up to $48.2bn.
