The world's number two mining company, Brazil’s Vale Doce said it received an environmental license to build its biggest-ever iron ore mine, an Amazon region project that holds about one trillion dollars of reserves at current prices.
The S11D mine, an extension of the company's giant Carajas complex, is expected to cost 8.04 billion to build. It will produce 90 million metric tons of iron ore and begin operations in 2016, Vale said.
Vale, which puts out about 300 million tons a year, is the world's largest producer of iron ore. S11D's design capacity is equal to nearly 10% of the world's annual exports of the principal raw material for steel.
S11D will help Vale maintain production and exports, replacing output from ageing mines in Brazil's Amazon and Minas Gerais regions. It will also consolidate Carajas -- part of the company's Northern System of mines, railways and ports -- as Vale's most important iron-ore district.
The expansion will also help Vale keep up with Australian rivals BHP Billiton Ltd and Rio Tinto Ltd in meeting growing demand from China, the world's largest steelmaker and largest customer for iron ore.
Vale, BHP and Rio Tinto, known as iron ore's Big Three, produce about 70% of the world's sea-borne iron ore exports of about 1 billion tons a year.
The preliminary license from Ibama, Brazil's environmental protection agency is the first major hurdle in a series that Vale needs to clear to bring the mine into production.
The S11D project has faced delays as the company investigated potential risks to local plants and animals and studied potential archaeological sites in and around the proposed mine site.
Vale said the new mine will use far less power and emit fewer greenhouse gasses than conventional open-pit mines.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!
It will be interesting to compare the level of 'indigenous action' pitched at ore mines in Brasilian Amazonia compared to hydroelectric schemes.Jul 02nd, 2012 - 10:52 am 0
@1 So you're not a fan of how indigenous people within Brazil's borders react to development projects? Or, did I misinterpret your post?Jul 02nd, 2012 - 04:45 pm 0
#2. No, you do have it wrong.Jul 02nd, 2012 - 10:29 pm 0
The question was one of comparability.
The local populations may prefer big holes to big dams.
Even the price they extract from the Brasilian Federal and State governments and the corporations may be massively different, and the extent of the battle over the societies and the environment.
It will be interesting to see which of these two nationally important schemes - Xingo dam and the Vale ore extraction - is most despised. programme.