Depending on super-sized equipment such as this
Liebherr hauler to meet its mega-mining future plans,
Vale announced a fiscal-year 2010 capital budget of
$12.9 billion, up significantly from 2009’s $10 billion.
(Photo courtesy of Vale S.A.).
Vale Budgets $12.9 Billion for Capital Spending in 2010
Here are brief summaries of eight of the
largest projects that will draw on Vale
investment funds during the coming year:
• In Brazil, the planned Carajás Serra Sul
(S11D) iron ore mine is budgeted at
$1.2 billion. This project, which still
requires board approval, will have capacity
to produce 90 million mt/y of iron
ore and will require a total investment of
$11.3 billion. Completion is planned for
the second half of 2013.
• Also in Brazil, the Onça Puma ferronickel
project is budgeted at $510 million
during the coming year. The project will
have a nominal production capacity of
58,000 mt/y of nickel in the form of ferronickel.
Project completion is scheduled
for the second half of 2010.
• Also in Brazil, $600 million will be spent
on the Salobo copper project, which has
design capacity to produce 127,000
mt/y of copper in concentrate. Project
implementation is underway, and civil
engineering has begun. Construction is
scheduled for completion during the second
half of 2011.
• In Oman, $484 million will be spent to
complete an iron ore pellet plant having
production capacity of 9 million mt/y and
a pellet distribution center having capacity
to handle 40 million mt/y. Startup is
planned for the second half of 2010.
• In Canada, $414 million is budgeted for
the Long-Harbour nickel processing facility
in Newfoundland and Labrador. This
facility is designed to produce 50,000
mt/y of finished nickel, 5,000 mt/y of
copper, and 2,500 mt/y of cobalt, processing
ore from Vale’s Ovid mine at
Voisey’s Bay. Start-up is scheduled for
the first half of 2013.
• In Mozambique, $595 million is budgeted
for the Moatize coal project, which
has design capacity to produce 8.5 million
mt/y of metallurgical coal and 2.5
million mt/y of thermal coal. Completion
is scheduled for the first half of 2011.
• In Argentina, $304 million is budgeted
for the Rio Colorado potash project,
which includes development of a mine
having initial capacity to produce 2.4
million mt/y of potash, with potential for
a future expansion to 4.35 million mt/y;
a 350-km railway connection; port facilities;
and a power plant. Startup is expected
to take place during the second
half of 2013. The project is subject to
approval by the Vale board.
• In Peru, the Bayóvar phosphate rock project
is budgeted at $219 million. The
project has design capacity to produce
3.9 million mt/y of phosphate rock and is
scheduled for completion during the second
half of 2010.
Looking to future sources of demand growth, Vale said it expects emerging economies to continue to drive growing consumption of minerals and metals, noting that over the past 15 years, these economies have increased their share of world base metals consumption from 32% to 59%, and that over the same period China has increased its share of seaborne iron ore trade from 9.7% to 59%..”