The Brazilian iron ore miner Cedro Mineração said in a statement that it is investing the equivalent of $676 million to build a concentration plant in Mariana, Minas Gerais state, to produce pellet feed grade iron ore with iron content expected to exceed 66 percent.
The ore will be sold to producers of direct-reduction-grade pellets, targeting clients in Europe and in the Middle East.
In the first stage, production will increase from the current 3 million metric tons (mt) to 5 million mt per year, driven by investments in infrastructure, equipment, and the lease of a mine in the region.
In a second stage, with the implementation of an 18-kilometer conveyor belt, production capacity should reach 9 million mt per year by 2028, and the full capacity of 20 million mt per year should be reached by 2030.
The third stage of the project involves expanding Porto do Meio, a marine terminal in Rio de Janeiro state, to a shipping capacity of 25 million mt per year.
The name Porto do Meio (Middle Port) reflects its location between the terminals of Vale and CSN in Itaguaí.