Vale to announce $12 billion investment to expand Carajas site

Brazilian miner Vale will announce on Friday a 70 billion real ($12.2 billion) investment to expand its iron ore and copper mining operations at the Carajas complex in northern Brazil, the presidential palace said on Wednesday.

The investments will be carried out through 2030, the presidential palace said, adding the announcement will be made at an event with Brazilian President Luiz Inacio Lula da Silva and members of his cabinet.

Vale, one of the largest iron ore producers in the world, did not immediately respond to a request for comment.

Carajas, which is located in Brazil’s Para state, is Vale’s largest iron ore production complex, contributing 177.5 million metric tons last year, or more than half of the firm’s total output of the steel ingredient in the period.

Vale has faced criticism from Lula and cabinet members in the past. Lula’s mining minister last year complained about the company’s lack of investment in Brazil and delays to a repair deal over a 2015 dam collapse. An agreement was ultimately sealed in October.

Last month, Vale’s chief executive Gustavo Pimenta held his first official meeting with Lula, where, according to the company, the executive highlighted there was “enormous convergence” between Vale’s projects and the country’s development agenda.

Brazil’s presidential palace said Vale will present its “New Carajas” project at the event on Friday, but it did not give further details.

Vale also produces copper and nickel in Para, at its Sossego, Salobo and Onca Puma mines.

($1 = 5.7587 reais)

(By Andre Romani and Roberto Samora; Editing by Chris Reese, Kylie Madry and Sonali Paul)