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Vale, a Brazilian company, has reopened a key mine and plans to invest $12 Billion in Minas Gerais

The Brazilian mining company Vale announced on Thursday that it would invest 67 billion Reais ($12.36 Billion) in its operations in Minas Gerais by 2030. This announcement was made at a ceremony marking the reopening a major mine in the town of Ouro Preto.

Vale stated in a press release that the majority of investments would be focused on expanding filtering and dry-stacking of iron ore waste tailings. Vale is aiming to reduce its use of dams at local operations from 30% to 20%. The company has set this goal after two tailings dams collapsed in Minas Gerais, killing hundreds of people and causing severe environmental damage.

The miner reopened Capanema's iron ore mine on Thursday, after 22 years of inactivity. It will operate without water for processing, producing no tailings, and eliminating the need for dams.

"Capanema represents the new phase in mining in Minas Gerais, and it reinforces our commitment towards a more responsible process of production," Vale Chief executive Gustavo Pimenta stated.

Vale, one of the largest iron ore producers in the world, said that it would invest in modernizing five operational complexes. This includes improvements in geotechnical structures management in mines, connectivity and fleet renewals in Minas Gerais.

Vale said Capanema would add 15 million metric tonnes per year to Vale’s iron ore production and help it achieve its goal to produce between 340 and 360 million tons of ore next year. (Reporting and writing by Roberto Samora, Editing by Rod Nickel).

(source: Reuters)