Saturday, 28 Jan 2012
Brazilian miner Vale SA is granted an operation license to mine a high grade iron ore pit at Carajas in north Brazil.
The license, granted by environmental authorities, will allow Vale to mine the N5 Sul pit, which is part of the N5 mine in the Serra Norte mining site at Carajas in Para state. This operation will support quality enhancement in iron ore production in Carajas in coming years.
Mr Tito Martins CFO of Vale said that the company is seeking to bring new iron ore reserves into production as reserves at some of its long standing mines, particularly in southeast Brazil, become depleted, reducing the iron content of the ore produced. Iron ore is the key raw material in steelmaking.
Carajas, where Vale already has extensive mining operations, has some of the world's highest quality iron ore reserves but its location in the Amazon has made environmental licensing a challenge in recent years.
The operation license now granted allows the opening of a new ore body in the N5 mine, which has the highest ferrous content within Vale's portfolio, strengthening Vale's position as a producer of high quality iron ore to global markets.
(Sourced from Dow Jones Newswires)
Showing posts with label Operations at Carajas. Show all posts
Showing posts with label Operations at Carajas. Show all posts
Saturday, January 28, 2012
Friday, March 11, 2011
Vale says Brazil gov't overcharging for royalties
Thu Mar 10, 2011 9:08pm GMT
* Vale seeking legal review of royalty payments
* Gov't source sees Vale owing up to $2.4 bln
(Reporting by Leo Goy in Brasilia and Brian Ellsworth in Rio de Janeiro; Editing by Lisa Shumaker)
* Vale seeking legal review of royalty payments
* Gov't source sees Vale owing up to $2.4 bln
RIO DE JANEIRO, March 10 (Reuters) - Brazilian mining giant Vale (VALE5.SA: Quote) said on Thursday the government is overcharging it for mineral royalties and will seek a legal review of some the requested payments amid a dispute over debts to the government that could reach $2.4 billion.
Vale, the world's largest iron ore miner, insisted it had made payments according to the law and said it disagreed with the government over criteria for calculating what it owed.
Analysts say the dispute, which comes as Brazil mulls an increase in mineral royalties that would boost government revenues from the booming mining business, is unlikely to financially harm the company or hinder its operations.
"Vale believes that the values being charged ... are excessive and should be submitted to (review of) judicial experts," the company said in a statement. "Discussions of the correct interpretation of laws are perfectly legitimate."
The firm said the government agency that collects royalties had in some cases considerably lowered requested payments when the company challenged them.
A source at the Mines and Energy Ministry told Reuters on Thursday that the disputed amount could reach 4 billion reais ($2.4 billion). A second source said that figure was the accumulation of a number of royalty disputes dating back years.
The sources said Mines and Energy Minister Edison Lobao had requested a review of pending mining royalty debts and had met with President Dilma Rousseff about the Vale dispute.
Authorities in the northern state of Para had sought to suspend Vale's license to operate the giant Carajas iron mine over the unpaid royalties, though that decision was quickly overturned by the same agency, Vale said.
Operations at Carajas were not affected, according to a company spokeswoman. Analysts for brokerage Ativa said in a research note on Thursday the dispute was unlikely to affect future operations at Carajas or to be resolved quickly.
The royalties in question relate to minerals extracted in Para, where Carajas is located, and in the state of Minas Gerais in the south east.
Vale, the world's largest iron ore miner, insisted it had made payments according to the law and said it disagreed with the government over criteria for calculating what it owed.
Analysts say the dispute, which comes as Brazil mulls an increase in mineral royalties that would boost government revenues from the booming mining business, is unlikely to financially harm the company or hinder its operations.
"Vale believes that the values being charged ... are excessive and should be submitted to (review of) judicial experts," the company said in a statement. "Discussions of the correct interpretation of laws are perfectly legitimate."
The firm said the government agency that collects royalties had in some cases considerably lowered requested payments when the company challenged them.
A source at the Mines and Energy Ministry told Reuters on Thursday that the disputed amount could reach 4 billion reais ($2.4 billion). A second source said that figure was the accumulation of a number of royalty disputes dating back years.
The sources said Mines and Energy Minister Edison Lobao had requested a review of pending mining royalty debts and had met with President Dilma Rousseff about the Vale dispute.
Authorities in the northern state of Para had sought to suspend Vale's license to operate the giant Carajas iron mine over the unpaid royalties, though that decision was quickly overturned by the same agency, Vale said.
Operations at Carajas were not affected, according to a company spokeswoman. Analysts for brokerage Ativa said in a research note on Thursday the dispute was unlikely to affect future operations at Carajas or to be resolved quickly.
The royalties in question relate to minerals extracted in Para, where Carajas is located, and in the state of Minas Gerais in the south east.
(Reporting by Leo Goy in Brasilia and Brian Ellsworth in Rio de Janeiro; Editing by Lisa Shumaker)
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