BRASILIA (Reuters) - Brazilian mining company Vale SA, the world’s largest iron ore producer, has received board approval to go ahead with the Serra Sul 120 expansion project that will increase its S11D mine-plant capacity by 20 million tonnes a year.
The company said in a securities filing on Thursday the expansion will require an investment of $1.5 billion over several years and raise output to 260 million tonnes a year for the North System in Para state.
“The Serra Sul 120 Project will create an important buffer of productive capacity, ensuring greater operational flexibility to face eventual production or licensing restrictions in the Northern System,” the company said.
Vale said bringing forward the Serra Sul 120 project and impact from the coronavirus pandemic will lead to revised guidance on investments for 2021 and the 2022-2024 period.
Reporting by Anthony Boadle; Editing by Tom Hogue
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