Brazil gives go-ahead to Vale's Mariana iron-ore expansion strategy
Mining News | 2013-05-29 08:15:59
The Brazilian mining major Vale has received permit from the country's Ministry of Mines and Energy to expand the exploration activities at the Mariana iron-ore project
By Paul Ploumis
SAO PAULO (Scrap Monster) : The Brazilian mining major Vale has received permit from the country’s Ministry of Mines and Energy to expand the exploration activities at the Mariana iron-ore project.
According to statement published by the Brazil’s official gazette, Vale is being granted concession to increase iron ore production at the 387 hectare mine in the municipality of Mariana. According to estimates, the new permit will allow Vale to improve the output by 20 million metric tons per annum.
The gazette also states that Vale should commence ore extraction within six months from the date of publication of the notification. Also, there must not be work stoppages for more than six months during the validity of the project.
The iron-ore output from Mariana had dropped 5.2% year-on-year owing to delay in permit for additional exploration activities. The Brazilian authorities resumed granting new permits only in May. There are nearly 120 mining requests pending before the Brazilian authorities.
Brazil’s new mining code is still awaiting final approval by the Congress.
