Vale Will Move Forward With Serra Sul Project
Vale estimated that Serra Sul 120 will create an important buffer of productive capacity, ensuring greater operational flexibility to face eventual production or licensing restrictions in the Northern System. The investment to double the existing TCLD, $385 million, in addition to providing flexibility, also adds relevant elements for the reduction of operational risks, adding reliability to the system, the company added.
The project foresees investments in the mining plant that, together with the logistics solution under development, are aimed at increasing the total capacity of the Northern System by 20 million mtpy, up to 260 million mtpy. Expanding the capacity of the mining plant and developing additional logistics capacity are important steps in increasing iron ore volume, maximizing margin, and optimizing flight quality.
With the anticipation of the Serra Sul 120 project and the delay in the execution of projects in 2020 due to the coronavirus pandemic, Vale reported it will review and update its investment guidelines of $5 million for 2021 and $4.5 million for the period between 2022 and 2024.