Vale Announces Serra Sul +20MTPA Project Enters Operational Stage [SMM Mine Update]

On July 30, 2026, Vale announced that it had started trial operation of the long-distance conveyor belt for the Serra Sul 20 million tonnes per year (mtpy) capacity expansion project, marking the project's official entry into the operational phase. This expansion project, combined with a compact ore crushing system planned to be put into use in Q4 2026, is expected to add 20 million mt of annual iron ore production to the S11D mine (Canaã dos Carajás, Pará, Brazil), improving the mine’s capacity and operational flexibility.

The Serra Sul 20 mtpy capacity expansion project is a key component of Vale’s corporate strategy, aimed at reinforcing the S11D mine’s competitive edge in the market. The project will not only enhance operational efficiency in iron ore operations but also strengthen Vale's ability to supply high-grade iron ore to the market. As an important part of the ‘New Carajás Plan,’ this plan aims to ensure the continued stability of iron ore capacity while expanding the supply of high-quality iron ore products and critical minerals, thereby consolidating Brazil’s position in the global energy transition and creating long-term value for society and stakeholders.

The expansion project has further boosted the capacity of the S11D mine and production facilities by replicating the existing long-distance conveyor system, developing new mining areas, installing semi-mobile crushing equipment, and constructing a new production line at the beneficiation plant. The project obtained the relevant mining operating license in September 2025.

In addition, the Capanema project, the Vargem Grande 1 Plant (VGR1) project, and the Serra Sul 20 mtpy capacity expansion project are all key milestones in the company’s iron ore capacity enhancement plan. The company plans to increase annual iron ore production to approximately 360 million mt by 2030, while continuously enriching and optimizing its iron ore product portfolio to achieve sustainable growth and competitive advantage.

In Q2 2026, Vale’s iron ore production reached the highest level for a second quarter since 2018. Total iron ore production was 84.3 million mt, up 1% YoY (700,000 mt). This growth was driven by record production at S11D, as well as incremental volumes from the Capanema and Vargem Grande 1 (VGR1) projects. Iron ore pellet production totaled 7.3 million mt, down 7% YoY (500,000 mt), due to the temporary suspension of production at the Oman plant during part of the quarter. Iron ore sales reached 79.7 million mt, up 3% YoY (2.4 million mt), supported by the sale of inventory and higher production.