Spotlight: The capex plans of major iron ore miners in Brazil

Three of the largest iron ore producers in Brazil announced their capex plans.

Two of them, CSN Mineração and Anglo American, will focus on their core business, while local giant Vale will seek diversification.

"Iron ore is a commodity that will enjoy firm demand for many, many years to come, it’s a safe bet. Diversification, on the other hand, brings risks," José Carlos Martins, CEO of mining company Cedro Mineração and founder of metals consultancy Neelix, told BNamericas.

Here we take a brief look at the plans of each company.

VALE

Vale, a global iron ore powerhouse, recently announced a US$6.5bn capex plan for 2024. For 2023, Vale assigned capex of US$6bn.

Of the total planned for next year, US$2.5-3bn will be allocated to energy transition metals such as copper and nickel.

Vale’s bet on energy transition metals comes amid projections of rising global demand for electric vehicles.

The firm estimates that copper and nickel demand will rise 16% and 19% through 2030, respectively, and global EV sales will expand 24% a year in the same period.

CSN

Iron ore miner CSN Mineração, an arm of Brazilian steelmaker CSN, plans to invest 15.3bn reais (US$3.1bn) between 2024 and 2028, compared to 13.8bn reais under its 2023-27 capex plan. 

"In the mining segment, we have had growth, and we will remain strong by growing our production and in a more selective way with projects, and we will have an increase in profitability," CSN chairman Benjamin Steinbruch said during a recent presentation with investors.

CSN plans to increase its own production and iron ore bought from third parties to 43.5Mt in 2024 and 68Mt in 2028. The projected 2023 figure is 42.5Mt.

CSN’s main mining project is Itabirito P15, or Casa de Pedra, in Minas Gerais state, where operations are planned to start in 1Q27 with capacity of 15Mt/y. Last year’s capex plan said operations would start in 4Q25. The delay is due to a more rigorous contracting process. Detailed engineering, equipment and structural acquisitions should be completed in 2025, according to the company.

ANGLO AMERICAN

London-based Anglo American appointed earlier this month Ana Sanches as president of its Brazilian operations.

The company then confirmed a plan to invest 12bn reais in its operations in Brazil through 2027.

Sanches replaced Wilfred Bruijn to lead the Minas-Rio iron ore project in Minas Gerais and Rio de Janeiro states, and the firm's nickel business in Goiás.

“We have the goal of reducing greenhouse gas emissions in our operational plants by 30% by 2030. In line with these objectives, we signed contracts for the purchase and self-production of electricity, which enabled a matrix of 100% renewable electrical energy in operations in Brazil,” Sanches said in a recent statement.