New Wisdom Investment Limited
Vale starts its largest iron ore project in Brazil
(Dec 23, 2016)
According to Reuters, The largest mining project of VALE5.SA starts on Saturday in Brazil, operations to reduce costs in a highly competitive market and consolidate its position as the largest iron ore producers in the world.
The S11D mine, located in the state of Pará, will produce 75 million tonnes of output at its peak four years later, making Vale more than rival Rio Tinto (RIO.AX). After several years of production stagnation, Rio Tinto and Vale yield on comparable.
Vale Chief Executive Murilo Ferreira said at the launch of the project that they had placed their hope on the giant mining project, because iron ore prices kept falling in recent years.
Vale recorded the largest loss last year as iron ore prices fell and huge amounts of money were spent on this project.
The company is building a processing facility for the mine and extending a railroad with an investment of $ 14.3 billion.
The S11D project will produce the highest quality ore at the lowest cost in the industry and it is expected to be exploited for 30 years.