Vale aims to produce 400m tonnes of iron ore by early 2023

19.10.2020, 19:02 - eeppo

Brazilian mining company Vale SA is on track to reach its goal of producing 400 million tonnes of iron ore by the end of 2022 or early 2023, Chief Executive Eduardo Bartolomeo said during the FT Commodities Mining Summit on Friday.

The company is already producing 1 million tonnes of iron ore daily, he said.

In 2018, before the Brumadinho dam collapse, Vale produced 385 million tonnes. For 2020, Vale has a production target between 310 million and 330 million tonnes. The company will report latter today its 3Q production and sales results.

Eduardo Bartolomeo also said that the accident at the Córrego do Feijão mine dam in Brumadinho was “a catalyst for making environmental, social and governance initiatives (ESG) the company’s main agenda,”

According to Bartolomeu, by 2023, only 20% of the company’s capacity will be restricted by upstream dams – similar to those who collapsed in Brumadinho and Mariana.

S11D

Indigenous people of the Xikrin ethnicity asked the Brazilian Superior Court of Justice (STJ) on Friday to halt Vale’s activities of its main iron mine, S11D, located in southeastern Pará, with a capacity to produce around 100 million tons of iron ore by year.

They claim that they were ignored in the licensing process for the mining complex, which started operating in 2016.

Approximately 1,500 members of the ethnic group live in the Xikrin do Cateté Indigenous Land, 12 kilometers away from Vale’s mine.

Vale said that “the S11D project is regularly licensed by Brazilian environmental agency (Ibama), meeting all conditions”.

The company says that there was no obligation to prepare a study related to indigenous people, since the mining activity is located more than 10 kilometers from the territory occupied by these people.

(With files from Reuters)