Brazil's CSN to invest US$345mn in iron ore this year

CSN Mineração, the iron ore arm of Brazilian conglomerate CSN, will accelerate its capex plans, as the Itabirito P15 project, also known as Casa de Pedra, in Minas Gerais state, is advancing.

"We will accelerate investments. This year, our investments will be between 2bn reais [US$345mn] and 2.5bn reais, and we will increase this amount year by year until 2027," CSN Mineração CFO Pedro Oliva told the 4Q24 results call.

By comparison, CSN Mineração invested 1.79bn reais in 2024 and 1.48bn in 2023.

Oliva underscored that CSN Mineração's 2025-30 capex plan involves 13.2bn reais.

"In the last few weeks, there has been less rain than expected in the project area, which has helped us move forward with the works. We are currently carrying out drainage and concreting work on the site, and throughout this year, we will hire and also begin the civil works for the project," said Oliva.

P15 is expected to start production in the first quarter of 2027 and add 15Mt/y of iron ore to the company's output.

It is a crucial project as it will improve iron ore quality by increasing iron content from 58% to 65% by 2028. The higher quality iron ore is expected to be in greater demand and fetch higher prices due to the need for steel mills in Asia to use raw materials that reduce carbon emissions.

Oliva said that the iron ore-focused Tecar terminal at Itaguaí port in Rio de Janeiro state will also receive substantial investments.

In 2024, CSN Mineração posted a net profit of 4.5bn reais, up 26.9%.

Meanwhile, CSN Group, which operates in the mining, steel, energy and logistics sectors, posted a net loss of 1.5bn reais, compared to the 403mn-real profit in 2023.

In total, CSN Group invested 5.5bn reais last year, up from 4.5bn reais.