Vale has obtained the installation environmental license (LI) for the Carajás S11D iron ore project, the highest-grade and lowest-cost project in the industry. The LI, which was issued by Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis (IBAMA), is part of the project’s second phase of licensing, which authorises the plant construction.
S11D is the largest project in Vale’s history as well as in the iron ore industry. The total capex for S11D is USD 19.671B, estimated at a BLR 2 per USD exchange rate. It encompasses the development of mine and processing plant (USD 8.089B) and logistics (USD 11.582B).
The project has a nominal capacity of 90 million tonne per year (Mtpy) of iron ore with proven and proved reserves of 4.240 billion tonne with an average ferrous content of 66.7%, low impurities and estimated cash cost (mine, plant, railway and port after royalties) of USD 15 per tonne (at a BLR 2 per USD exchange rate). S11D is expected to start up in 2H16 and deliver full capacity production in the 2018 calendar year.
