Brazil miner and iron ore producer Vale has reduced the amount of money it expects to spend at its S11D project, the company’s largest iron ore initiative, to $14.4 billion.
Initially, Vale thought it could spend $19.7 billion in the project, but it has then downgraded its forecast to $16.4 and more recently to $14.4 billion. The change is due to the weakening of the BRL over the US, since most of the company’s costs are in BRL.
Vale presented its new estimate for the project this week to investors visiting the mine, which is located in Brazil’s Carajás region, in the state of Para. The company said it expects to spend, out of the total $14.4 billion budget it plans for the initiative, $7.9 billion in logistics for iron ore.
In the presentation, Vale said it already spent $8.4 billion in the project, whose amount should increase up to $9.4 billion by the end of 2015.
Vale’s S11D project will add 90 million mt/year to Brazil’s iron ore capacity.