Brazilian mining giant Vale has announced an upward revision to its iron ore production targets, with plans to reach 360 million tonnes of fines annually by 2030, Kallanish reports. This growth will be driven by operational advancements at key mining complexes, including S11D, Itabira, and Brucutu.
2024-2030 Production Projections
- 2024: Production forecast increased to 328 million tonnes, up from the previous estimate of 310-320mt.
- 2025: Expected output to further rise to 325-335 million tonnes.
- 2030: Projected production to reach 340-360 million tonnes.
Focus on Quality Enhancements
Vale is prioritizing iron ore quality improvements, aiming to raise the average Fe content from the current 62.3% to approximately 64% within six years. This aligns with global demand for higher-grade materials to support low-carbon steel production.
Agglomerate Production Growth
Agglomerate (lump ore) output is expected to follow a similar growth pattern:
- 2024: Projected at 38 million tonnes.
- 2030: Anticipated to grow to 60-70 million tonnes.
Investment Plans
Vale is set to increase capital expenditure to support production growth:
- 2024: Planned investment of $6.1 billion.
- 2025: Expected to rise to $6.5 billion, with $3.5-4 billion dedicated to iron ore solutions.
Market Implications
Vale’s strategic emphasis on volume and quality positions it as a key player in meeting evolving global steel industry needs, particularly as demand shifts toward premium raw materials for greener production technologies. These investments and projections underscore Vale’s long-term commitment to strengthening its market leadership.
