The Norte Abierto complex was previously approved in 2019 following the submission of an Environmental Impact Statement.

China's industry ministry said the country will take steps to stabilise raw material prices and strengthen supervision of the market after a spike in prices.

Shares were up 37% after pre-market trading Tuesday.

Iron ore prices jump 4% on Tuesday with $200 in sight, extending gains spurred by disappointing output figures from top two producers.

Vale’s iron ore output totaled 68 million tonnes in 1Q21, 14.2% higher than in 1Q20, but down 5.5% compared to the 72 million tonnes average analyst estimate.

Company also reported total production of 1,986 tonnes of vanadium oxide in Q1 2021, a decrease of 30% over same period last year.

Vale, Rio Tinto and BHP are due to report production data this week as well as give market outlooks.