Brazil's Gerdau SA will invest $667 million in brownfield expansion of its Miguel Burnier iron ore mine. The company said the expansion would be "sustainable" and reduce emissions while boosting output.
Gerdau expects the new platform to raise capacity of the mine, located in the state of Minas Gerais, to 5.5 million metric tons of iron ore per annum. The expansion is scheduled to start operating at the end of 2025, the company said. Ore from the brownfield expansion will be channelled into four steel production units also located in Minas Gerais.
Gerdau said the project will use dry stacking to dispose off mining tailings – the waste material after the ore has been extracted – which will eliminate the need to use a dam.
"This new sustainable mining platform is also an important initiative in reducing our greenhouse gas emissions, since we will have high quality ore," Gerdau's CEO Gustavo Werneck said in a statement, Reuters reported.