Brazilian iron ore and pellet producer Samarco reported that its administration board has approved an investment of BRL 1.31 billion ($271 million) to increase its production capacity, currently limited to 30 percent of its nameplate capacity, which already represents an increase from the 26 percent pace registered earlier this year.
The company stopped operations due to an accident in 2015, returning to production at low pace in 2020, and it remains under judicial recovery.
From the total amount approved, the plant for filtering of waste products and improvements in the concentration plant will require investments estimated at BRL 560 million, while BRL 753 million will be destined to the regular maintenance of productive assets.
During 2023, BRL 248 million will be invested, while most of the balance will be spent during 2024.
According to Samarco’s CEO Rodrigo Vilella, the return to full capacity will be made in a “gradual and safe” manner, with special care with the disposal of waste and with the communities of cities in the states of Minas Gerais and Espirito Santo, were mines, pipeline and pellet plant of the company are located.
