The Vale Southern Range Expansion Project has officially received the key operational license from the Brazilian Institute of Environment and Renewable Natural Resources.

Published: Sep 15, 2025 13:42

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Brazilian mining giant Vale S.A. announced on September 11, 2025, that itsSerra Sul +20 Mtpy expansion project (Serra Sul +20 Mtpy)has officially received the key operating license issued by the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA). This is a major milestone in the project's advancement.

Project Core Objectives and Impact:

Capacity Increase: The core objective of the project is to increase the annual iron ore capacity of its S11D mine-beneficiation plant in the Northern System of Brazil by 20 million mt.
Strategic Significance: The project is positioned as a strategic platform for Vale to achieve sustainable growth in iron ore in Brazil, which will significantly enhance the company's overall capacity and increase the flexibility of its iron ore product portfolio.

Project Specifics and Investment:

Investment Amount: The total investment for the project is expected to be $2.8 billion.

Construction Scope: To achieve the capacity expansion, the project will include several specific works: development of new mining areas; installation of new semi-mobile crushers; replication (addition) of the existing long-distance conveyor belt system; and construction of new processing lines within the beneficiation plant.

Current Progress (as of July 31, 2025):

Financial Progress: 57% completed.
Physical Engineering Progress: 77% completed.

Project Timetable

Obtaining the license is a critical step in advancing according to the planned timetable.

The project is expected to commence trial operations in H2 2026.

Project Background and Strategic Positioning:

This expansion project is not a standalone initiative but, together with the Vargem Grande project and the Capanema project, forms a strategic portfolio of initiatives for Vale. This portfolio aims to systematically and continuously increase the company's iron ore production and optimize its product mix

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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