Vale reopens Capanema mine and unveils $12.2B investment plan in Minas Gerais

[Redator]

Vale (NYSE: VALE) has officially reopened the Capanema iron ore mine in Ouro Preto, Minas Gerais, after a 22-year halt, as part of an investment strategy worth R$ 67 billion ($12.2 billion) through 2030.

The reactivated Capanema unit, which received about R$ 5.2 billion ($950 million) in investments, will operate without using water in processing, generating no tailings and removing the need for dams.

The shift toward dry processing has been a central goal for Vale following the deadly collapses of two tailings dams in Minas Gerais in 2015 and 2019, disasters that killed hundreds of people and caused widespread environmental devastation.

The majority of Vale’s upcoming investments in Minas Gerais will be directed toward expanding dry tailings stacking and filtration solutions. The goal is to reduce the reliance on dams in the state from 30% today to 20%.

The site will also feature five autonomous haul trucks and incorporate circularity solutions by reprocessing iron ore from an old waste pile.

Vale shares were up 0.5% on Thursday morning in New York, giving the company a market capitalization of $43.6 billion.

Boost to production

The mine is expected to add around 15 million tonnes per year (Mtpa) to Vale’s iron ore output, supporting the company’s production guidance of 340–360 Mtpa by 2026.

“Capanema reinforces our commitment to a more responsible mining process — minimally invasive and driven by technology and innovation for optimal resource use and decarbonization,” said Gustavo Pimenta, Vale’s CEO.

Vale employs around 63,000 people, including contractors, and its operations account for roughly 3.5% of Minas Gerais’ GDP. Over the past two years, the state has been responsible for nearly 45% of Vale’s total iron ore production.