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Vale expects to raise Carajas iron ore output by 13% with billionaire investment
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Vale expects to raise Carajas iron ore output by 13% with billionaire investment
Feb 14, 2025 4:19 PM

SAO PAULO/BRASILIA, Feb 14 (Reuters) - Brazilian miner

Vale said on Friday it expects to raise iron ore

production in its main complex Carajas, in northern Brazil, by

nearly 13% through 2030 as part of a 70 billion real ($12.26

billion) investment plan in the region.

Brazil's presidential palace announced the investment on

Wednesday, and Vale unveiled details on Friday at an event

attended by Brazil's President Luiz Inacio Lula da Silva.

Vale is among the world's largest iron ore producers.

Carajas, in Brazil's Para state, is the miner's main output

complex for the steel-making ingredient.

In Carajas, Vale produced 177.5 million metric tons of

iron ore last year, more than half its total output of the

commodity in the period.

Vale said on Friday it expects iron ore production in

the complex to reach 200 million tons per year by 2030, with the

boost coming from moves such as the expansion of its Serra Sul

mine.

At the event, Lula said the election of Gustavo Pimenta

as Vale's chief executive

last year

was an opportunity to realign Vale's interests with

Brazil's interests.

He and his cabinet members had complained in the past

about Vale's lack of investment in Brazil and delays in repair

after a 2015 dam collapse. An agreement was

ultimately sealed

in October.

"It is important that Vale takes into account that it

has to distribute dividends to shareholders," Lula said. "But it

is also important that it takes into account that it has to

invest in order to grow, to generate jobs".

Minister for Mines and Energy Alexandre Silveira said

the government has seen signs of improvement under Vale's new

management.

Apart from iron ore, Vale said it sees its copper production

at Carajas growing by 32% to about 350,000 tons by 2030 with the

investment plan, dubbed "New Carajas".

The company said the investments toward the plan are in

line with its guidance.

($1 = 5.7110 reais)

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