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Investors Should Know about Vale's Performance and Outlook (Part 7 of 17) (Continued from Part 6) S11D project
The Carajás Serra Sul S11D iron ore mine is located in the Carajás mining district in the Para region of Brazil. S11D stands for iron ore body 11, block D.
The S11D project is an iron ore mining and logistics project that Vale SA (VALE) has undertaken. The S11D project will increase the mining and processing capacity at Vale’s Carajás mining complex by 90 million tons per annum to 450 million tons. This area is very rich in iron ore content and produces ~67% iron ore. It’s one of the most important components of the company’s strategy.
Progressing according to plan
The S11D project is progressing as planned. It reached 42% of combined physical progress in 4Q14.
In the logistics infrastructure, nine out of the 48 duplication segments of the railway were completed in the year. The offshore berth reached 43% physical progress. The railway spur that links the new S11D mine to the Estrada de Ferro Carajás (or EFC) reached 45% completion.
When completed, the rail spur with an extension of 101 kilometers will enable the following transportation of all iron ore produced at S11D:
- all electro-centers of the truckless system received on site
- transportation of the modules for the plant area ongoing
- electromechanical assembly services of the mine and the long-distance conveyor belts initiated
The project start-up is scheduled for the second half of 2016.
Importance of the S11D project
The S11D project is an important way for Vale to increase its iron ore capacity while further reducing its overall costs per unit. It will help the company compete in the iron ore market in which rivals BHP Billiton (BHP), Rio Tinto (RIO), and Fortescue Metals Group (FSUGY) are increasing capacities and undertaking restructuring efforts to reduce costs.
Together, BHP, RIO, VALE, and FSUGY contribute to 32.0% of the iShares MSCI Global Metals & Mining Producers ETF (PICK). The SPDR S&P Metals & Mining ETF (XME) also invests in metals and mining companies.
Continue to Part 8 Browse this series on Market Realist:
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Vale
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EXPLORATEUR |
CODE : VALE3.SA |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Vale est une société de production minière basée au Bresil. Son principal projet en exploration est GALIURO en USA. Vale est cotée au Bresil et en France. Sa capitalisation boursière aujourd'hui est 325,8 milliards BRL (150,8 milliards US$, 137,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 19 février 2016 à 10,51 BRL, et son plus haut niveau récent le 27 août 2021 à 99,80 BRL. Vale possède 5 244 319 744 actions en circulation. |