Vale's New Steel unit to invest 4.4B reais in dry iron ore processing technology

Vale SA subsidiary New Steel SA signed a protocol of intent with Brazil's Minas Gerais state to spend 4.4 billion reais developing dry iron ore processing technology that removes the need for tailings dams, Bnamericas reported Nov. 9, citing a statement.

Vale has begun rolling out the technology at the Vargem Grande operation, with startup eyed in 2024. The system is expected to be online at the Fabrica and Fazendao mines by 2026. Minas Gerais saw tailings dam bursts at Vale's Samarco mine in 2015 and Feijao mine in 2019.

The technology involves limited water usage and allows the use of materials with a low concentration of iron that is not viable in the conventional process, according to New Steel's engineering manager, Henrique Hauck.

"In it, the tailings are dry at the end of the process and deposited in piles, dispensing with the use of dams. In addition to being more sustainable, this new process also has the capacity to generate ores with high levels of iron, which are more valued in the international market," Hauck was quoted as saying.

In December 2018, Vale agreed to acquire New Steel for $500 million. New Steel's pilot plant for dry iron ore processing was inaugurated in July 2020, and its first commercial plant is expected to start operating in 2022.

As of Nov. 9, US$1 was equivalent to 5.50 Brazilian reais.