Vale projects expansion of iron ore production in Carajás to 200 million tons by 2030.

(Reuters) Vale stated this Friday that an expansion of operations in Carajás, resulting from investments to be made in the coming years, will allow iron ore production from the company's main asset to reach a rate of 200 million tons per year by 2030.

In a statement, Vale confirmed an investment of R$ 70 billion in the complex located in Pará over the next five years, after the Presidential Palace had anticipated the amount in a statement released this week announcing President Luiz Inácio Lula da Silva's visit to the site this Friday.

The company emphasized that the investment in the Novo Carajás Program, which marks 40 years of Vale's operations in the region, is in line with the guidance already released. During the announcement of its annual plan in December, the mining company projected investments of US$3,5 billion to US$4 billion in iron ore solutions in 2025 and subsequent years.

"Carajás is a successful case of public-private partnership, focused on protecting the forest where we produce, using dry mining processes and innovative technologies, about 60% of the ore that Brazil exports," said Vale's president, Gustavo Pimenta.

Vale said that the increase in iron ore production capacity will come from the expansion of the Serra Sul mine (S11D) and from replenishing the depleted reserves of existing mines.

Vale's Northern System, which includes Carajás, produced 177,5 million tons of iron ore in 2024, or more than half of the total produced by the company last year.

In the case of copper, Vale expects production growth of 32%, raising production in the region to approximately 350 tons, according to the company, which cites the metal as an important raw material for the manufacture of batteries and other equipment crucial in the energy transition economy.

In Pará, Vale also produces copper and nickel in the Sossego, Salobo, and Onça Puma mines.

"The New Carajás Program brings benefits to Brazil, with the potential to position the country as a global leader in the supply of critical minerals and reinforce its leading role in combating climate change," Pimenta emphasized.

According to him, the program expands the business by generating value and leveraging "strategic market opportunities for the company in an economy based on low-carbon industries."

Vale also highlighted that the program will make a significant contribution to Pará's GDP, in the order of R$80 billion to R$100 billion per year, while future production will allow for an increase of R$15 billion in the state's exports.

Vale's role as a driver of economic growth was questioned throughout last year, when members of the government, including President Lula himself, complained about the lack of dialogue with the mining company's previous administration, among other criticisms.

Amidst controversies, there were changes at the top of the company, which moved closer to the government.

The mining company highlighted that it has invested in so-called "circular mining," as is the case with the Gelado project in Carajás, which involves reusing the tailings from the iron ore production process.

By 2030, Vale anticipates that 10% of its total iron ore production will consist of products from "circular mining".

"Gelado, with a production of 6 million tons/year resulting from the reuse of tailings, will play a fundamental role in this goal, towards mining without tailings and products with a low carbon footprint," said the mining company.

Vale also drew attention to its investments in the environmental area.

In partnership with the Chico Mendes Institute for Biodiversity Conservation (ICMBio), Vale stated that it helps protect approximately 800 hectares of forests in the Carajás Mosaic, an area equivalent to five times the size of the city of São Paulo.

(By Roberto Samora, in São Paulo)