Vale officially inaugurated on Saturday its S11D iron ore project, which is located in the city of Canaa dos Carajas, in the state of Para, following the approval of an operating license for the mine earlier in December, the company said.
The $14.3 billion complex is the company’s biggest iron ore project ever, and is expected to help it achieve the world’s cheapest iron ore production cost, Vale said. The S11D mine is also Brazil’s largest private investment in the past decade.
Vale said the launching of the S11D mine should also help Vale’s other producing sites, including those in the state of Minas Gerais, since their iron ore will be blended with that of S11D at Vale’s distribution centers abroad.
“For me, seeing the completion of S11D is much more than just witnessing a new landmark in the mining industry. More than an enterprise embodying the latest technology, low cost and high productivity, the S11D portrays Vale’s ability to make things happen,” Vale’s CEO, Murilo Ferreira, said.
Vale initially began the project in 2011 with the first economic feasibility studies. In 2012 the company received a preliminary license and more recently, in December this year, the project received its operating license.
Vale said the cost of the S11D iron ore delivered at its Ponta da Madeira maritime terminal in the city of Sao Luís, in the state of Maranhao, the so-called C1 cash-cost, is about $7.7/mt, 41 percent less than Vale’s current average C1 cost.
The mine’s lifespan is estimated at 30 years.