Brazilian steelmaker Gerdau has received approval from the Brazilian competition authority (CADE) for the sale of its Várzea do Lopes iron ore mine in Itabirito, Minas Gerais, to Grupo Avante within the scope of its restructuring plan.
Grupo Avante takes over operations
Under the agreement, Grupo Avante will manage all operations and iron ore production at the mine. In addition, Gerdau will retain the right of first refusal to purchase a portion of the mine’s output and assume mine closure costs.
Focus on sustainable mining at Miguel Burnier
Following the divestment, Gerdau will concentrate on its Miguel Burnier mine in Ouro Preto, Minas Gerais. This site supplies iron ore directly to the company’s Ouro Branco steel plant. The company has committed BRL 3.2 billion ($593.3 million) to expand Miguel Burnier’s capacity to 5.5 million mt per year. The move aligns with Gerdau’s broader strategy to focus on sustainable mining.