Vale Says Rail Delay Limits New Iron Mine Output to 75m Tonnes

  • Tuesday, September 20, 2016
  • Source:ferro-alloys.com

  • Keywords:iron ore
[Fellow][Ferro-Alloys.com] RIO DE JANEIRO – Brazil's Vale said on Monday output from its new S11D iron-ore mine in the Amazon region will be limited to 83 percent of full capacity as efforts to preserve cash and limit transport disruptions crimp a needed railway expa...

[Ferro-Alloys.com] RIO DE JANEIRO – Brazil's Vale said on Monday output from its new S11D iron-ore mine in the Amazon region will be limited to 83 percent of full capacity as efforts to preserve cash and limit transport disruptions crimp a needed railway expansion.

The $14.3 billion project, Vale's biggest-ever investment, was widely expected to produce up to 90 million metric tonnes a year of iron-ore - the key ingredient in steelmaking - after a two-year ramp-up scheduled to begin by year-end.

But S11D will only deliver up to 75-million metric tonnes to international seaborne clients after a four-year ramp-up, Vale said, responding to an article last week in Britain's Financial Times business newspaper.

"There has been a replanning of the execution of construction work on the logistics corridor in a phased form in order to minimise interference with existing operations and optimise our cash flow without increasing the project's capital spending," Vale said.

  • [Editor:Chen Zhen Seng]

Tell Us What You Think

please login!   login   register
  • Buy & Sell

 
Please be logged in to comment!