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Company «Vale» expanding its projects

Wanting to expand iron ore mine Carajas complex (northern state of Pará), the department that focuses on the protection of the Environment of Brazil, is ready to approve the license, intended for «Vale», the world's leading manufacturer of iron ore. The project investments which amounted to about 20 bln. USD, expected to be completed by 2016, gaining the ultimate power in 2018, increasing by that time the annual volumes of iron ore to the level of 90 mln. Tons. The company has already received a preliminary license and plans to expand Morro1 projects Morro2, N5S and N4WS in Carajas, which can further ensure the company's 1.8 bln. Tons capacity.

It is located in the Carajas iron ore assets of the largest volumes of proved reserves which amount to about 7.2 billion. Tons. This project is very important for the company, since 35% of its annual production, which is nearly 300 million. Tons. Furthermore, «Vale» prone to loss of the market to compete with «BHP» and «Rio Tinto». To reduce the negative impact on the environment, the company is planning to organize iron ore smelters for processing by means of a 37-kilometer conveyor belt, eliminating the use of trucks. Last year, the company has received permission to expand the complex near the mine «Serra Sul» and the construction of the railway system in the amount of 19.5 billion. USD.

In addition the company plans to acquire over the next 5 years, new ships for the purpose of increasing the volume of products shipped to China. Planned volumes of exported ore of 400 million. Tons a year, while only 270 million. Tonnes exported last year. Using the company «Valemax» vessels capable of greatly reducing the transportation of products to the Asian market costs, begun in 2011, but the port authorities of the PRC have not given us permission to moor in ports, both to comply with safety and to prevent the impact on the costs and demand. To date, the company's management is considering the purchase or rental of at least 230 vessels in an attempt to cope with all the growing production volumes. Today «Vale» fleet consists of 35 «Valemax» vessels, and the company's share on the Chinese market is 12−14%. Most of the «Valemax», owned by the company, was based on China's shipyards.

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