Brazilian steelmaker Gerdau is expected to increase iron ore output at its Varzea do Lopes mine, in the city of Itabirito, in the state of Minas Gerais, as it advances the completion of a expansion plan that should add some 7 million mt/year of the commodity to its current production volumes.
A state environmental authority, Semad, will decide next week if the company can advance its output expansion plan. Currently, Gerdau produces 6 million mt/year of the product at its Varzea do Lopes mine in Itabirito.
A media report said Gerdau benefits from a positive assent from Semad, which increase the chances of the expansion to be accepted by the local authority. Gerdau is reportedly to have completed most of the 24 conditions that were imposed by Semad in order to advance its expansion plan at the mine.
According to reports, the life cycle of the mine should fall to eight from 14 years, as a result of the output increase.