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January 8, 2020
CRU: What’s Happening with Vale’s Northern System Expansions?
Written by Erik Hedborg
By CRU Research Analyst Eduardo Tinti and Senior Analyst Erik Hedborg, from CRU’s Iron Ore Costs
Following suspensions of iron ore production in Minas Gerais, Vale’s Northern System located in the Pará state will account for a growing share of the company’s total production. Despite some supply issues in 2019, production is ramping up and Vale’s S11D is scheduled to reach close to its full capacity of 90 Mt/y in 2020. Vale is also investing in infrastructure to expand S11D’s capacity to 100 Mt/y by 2023. However, there is still plenty of uncertainty regarding Vale’s additional 50 Mt/y expansion project proposal that was announced in May 2019.
