Vale announced that it has obtained the preliminary environmental license LP to the iron ore project Carajás S11D, issued by the Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis (IBAMA). The LP is part of the project’s first phase of licensing and attests its environmental feasibility.

S11D is the largest project in Vale’s history and also in the iron ore industry, being our major lever for production capacity growth and for maintaining Vale’s undisputed leadership in the global market in terms of volume, cost and quality. Located in the southern range of Carajás, in the state of Pará, Brazil, with an estimated capex of USD 8.039 billion for the development of mine and processing plant, the project has a nominal capacity of 90 million tonnes per year of iron ore with an average ferrous content of 66.48% and low concentration of impurities. Operations are expected to start in the second half of 2016.

S11D will require investments in logistics infrastructure, in the Carajás railroad and the Ponta da Madeira maritime terminal, estimated at USD 11.4 billion, which will allow them, after the conclusion, to handle 230 million tonnes per year of iron ore.

Once the S11D mine and plant are operating, there will be decreases of 93% and 77% of water and fuel consumption, respectively, allowing for a 50% cut in greenhouse gases emissions, when compared to conventional methods. The dry process will also reduce electricity consumption of 18,000 MW per year and eliminate the need of tailings dam, minimizing the interference in native environments.

The next step in the environmental licensing process is the installation license (LI), which will enable the start of the plant construction.

Carajás, including Serra Sul where S11D is located, has proven and probable reserves of 7.383 billion tonnes, being 17.165 billion tonnes the total proven and probable reserves of iron ore of Vale.

Source - Vale

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