The Brazilian arm of Vallourec received from federal and state authorities the environmental authorizations to expand the iron ore production at its Pau Branco mine, located in the southeastern state of Minas Gerais.
The mine, located in the municipalities of Nova Lima and Brumadinho, has a nominal capacity of 5.0 million mt per year, with production earmarked to supply the Vallourec plant of Jeceaba.
In a first stage, the mine will receive investments of up to $27 million, destined to increase the quality of the ore and improve the profitability of the mine, with conclusion expected for the end of 2024.
In the second stage, the mine will have its production capacity expanded by 3.0 million mt, with investments of up to $134 million and conclusion expected for 2027.
The CEO of the Vallourec Group, Philippe Guillemot, said in a statement that the project has “a high return on the investment and a fast payback, increasing the value generated by our assets in Brazil”.
He added that the Pau Branco mine will remain supporting Vallourec’s local piping production.
