The world's second largest exporter of iron-ore pellets, Samarco Mineracao SA, will spend $1.2 billion on ore producing operations in
Brazil.
The plan was approved by
iron ore producer Cia.
Vale do Rio Doce and mining company
BHP Billiton Ltd., each which owns half of
Brazil-based Samarco, at a board meeting on Thursday.
The operations include a new ore concentration plant in Germano,
Brazil and a second 400-kilometer ore-slurry duct to carry ore to the port of Ubu,
Brazil. Samarco will also build a third ore-pellet plant with operation slated for February 2008.
Samarco's output will raise more than 50 percent once the new facilities are in operation.