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| Vale Capanema mine |
Major Investment Marks Shift Toward Tailings-Free Iron Ore Production in Brazil
Vale’s reopening of the Capanema mine signals a decisive shift toward dry iron ore processing and circular mining practices. The company launched the site after a 22-year pause, investing R$5.2 billion ($950 million) in the mine as part of a broader R$67 billion ($12.2 billion) commitment to Minas Gerais through 2030.
This development aligns with Vale’s response to the 2015 and 2019 tailings dam failures, which caused hundreds of deaths and major environmental damage. As a result, Vale is accelerating the deployment of dry stacking and filtration technologies to reduce its reliance on tailings dams from 30% to 20% in the state.
Circular Economy and Autonomous Haulage at Capanema
The reactivated mine introduces new circular economy initiatives, including the reprocessing of old waste piles to extract usable iron ore. In addition, Capanema features five autonomous haul trucks, enhancing operational efficiency and safety. Importantly, the site eliminates the use of water in ore processing, producing no tailings and requiring no dams.
Meanwhile, these changes reflect a broader trend across the mining sector: integrating technology and sustainability to meet both regulatory demands and investor expectations. Vale’s move underscores the industry's strategic pivot toward decarbonization and minimal environmental impact.
Output Expansion Supports Long-Term Supply Strategy
Capanema is expected to add 15 million tonnes per annum (Mtpa) to Vale’s iron ore capacity, contributing to the company’s medium-term target of 340–360 Mtpa by 2026. This increase will support both global steelmaking demand and Vale’s supply commitments, particularly in Asia.
In contrast to past operations, Vale now positions itself as a leader in responsible mining. The company employs 63,000 people, and Minas Gerais alone contributes nearly 45% of its total iron ore output. CEO Gustavo Pimenta emphasized that Capanema exemplifies a “minimally invasive, technologically advanced” approach to resource development.
ScrapInsight Commentary
Vale’s reactivation of Capanema reflects a significant structural change in iron ore mining — from dam-dependent systems to dry processing. This move may pressure global peers to accelerate similar transitions. In the short term, increased output could soften regional iron ore prices, but long-term environmental compliance strengthens Vale’s global competitiveness.
