J&F Mineração announced investments of $1 billion to expand iron ore production in the mines acquired from Vale last year. The mines are located in the central western state of Mato Grosso do Sul.
Since the acquisition, J&F has doubled the capacity of the mines, from 2.0 to 4.0 million mt per year, while with the additional investment the capacity is expected to reach 10 million mt per year until the end of 2024.
The investment will include logistic improvements, with the construction of a 50-kilometer railroad, linking the mines to the fluvial port of Gregorio Curvo, in the city of Corumbá, a transportation that is currently made via truck.
Th company will also acquire additional 400 barges, to be used in the transportation of the ore, along the Paraguay and Parana rivers, to the port of Nueva Palmira, in Uruguay, for transshipment to Panamax grade vessels, allowing for ocean shipments.
According to the local press, the investment is part of a $7.7 billion amount that J&F plans to invest in mining activities, but so far it is not clear how much will be destined to iron ore production.