Brazilian miner and iron ore producer Vale may add up to 49 million mt of iron ore capacity in 2021, excluding potential restrictions, the company said. According to Vale, it plans to complete several projects during the year, the first of which is planned in Q1.
Vale expects to finish in Q1 several adjustments at its Timbopeba mine, which will increase output by 7 million mt. The company also expects to resume pelletizing activities at its Vargem Grande mine by Q1, adding another 7 million mt capacity.
In Q2, Vale plans to add an additional 6 million mt capacity at its Varge Grande site by resuming operations at a conveyor belt, in addition to dry iron ore processing capabilities at its Fabrica mine, which should add 4 million mt.
As for Q3, its Vargem Grande mine may increase output by another 4 million mt with the restart of its Maravilhas III and filtering unit sites.
Three other projects in Q4 adding some 21 million mt in capacity include the restart of its Torto mine (17 million mt) activities, as well as projects at its Serra Leste (2 million mt) and S11D (2 million mt) sites.
All projects combined may add up to 49 million mt in capacity. However, Vale also unveiled potential restrictions that when counted, the total capacity increase falls to 35 million mt. Restrictions include provisional restrictions at Vale’s Itabira mine, which may reduce capacity by 9 million mt, as well as licensing delays and weaker performance at sites like Mutuca and Serra Norte, which were estimated as having a potential loss of 5 million mt.