Brazil-basedmininggiantValehas announced that sixty percent of the physical construction works on its S11Diron oreproject, the world’s largestiron oreproject, which includes a mine, plant, and railway and port logistics, has been completed, and the project will startproductionin the second half of 2016. The project has an estimatedproductioncapacity of 90 million mt per year.
Valestated that total investment for the project will be $14.4 billion, $6.5 billion in the mine and plant, and $7.9 billion in building a 101-km railway branch line, double-tracking the Carajás Railway and expanding the Ponta da Madeira Maritime Terminal in São Luís, Maranhão.
Alongside other new projects and expansion work in Pará and Minas Gerais, S11D will helpValeto increase itsproductionof high-quality, low-costiron ore. It is estimated that the company's annual output will grow by 35 percent in the next four years, from 340 million mt in 2015 to 459 million mt in 2019. In addition, thanks to S11D, the operating costs inVale's North System, which includes Carajás, will fall below the current level of $10 per dry metric ton.