Brazil: Vale targets 360-mnt iron ore output by 2030 with focus on sustainable growth

• Vargem Grande plant launched to boost efficiency
  
  
• Horizontes, Tamandua mines to be expanded soon
  
  

Brazilian mining giant Vale has set an ambitious target to surpass 360 million tonnes (mnt) of iron ore production by 2030, said Eduardo Mello Franco, Marketing Manager, Vale, at the Asia Iron Ore Summit organised by Mysteel Global.

As part of this strategy, the company is committed to driving sustainable mining practices, focusing on safety benchmarks, effective dam management, and regional socio-economic development. With a people-driven culture at the core, Vale aims to align growth with responsible practices, promoting environmental and social welfare across its operations.

A key development in Vale's production strategy is the launch of the Vargem Grande VGR1 plant in September, which shifts from natural moisture processing to wet processing. This transition is designed to enhance production efficiency and quality, ensuring the company stays competitive in a dynamic global market. Additionally, the expansion and licencing of the Horizontes and Tamandua mines, expected to be approved by Q4CY'24, will further boost output and help meet long-term production goals.

One of the standout components of Vale's strategy is the S11D+20 project, focusing on expanding production at the S11D site, which is known as the industry's most efficient iron ore operation. With a high-grade Fe 65% content, S11D remains Vale's lowest-cost asset, underscoring its ability to meet growing market demand for high-quality iron ore. This expansion reinforces Vale's focus on maintaining product quality while increasing capacity to remain a leading supplier.

Following the Brumadinho dam incident, Vale has also pivoted to providing high-silica products, ensuring broader product availability and market resilience. In Q2CY'24, these high-silica products generated an EBITDA of $20/tonne (t), demonstrating profitability across the company's diversified portfolio. With new assets online and key expansions underway, Vale is well-positioned to achieve its ambitious output goals while fostering sustainable and efficient mining operations.