Vale boosts iron ore output as Capanema mine restarts after 22 years

Vale

Vale boosts iron ore output by restarting the Capanema mine in Minas Gerais. Vale boosts iron ore output with 15mn t/yr of new capacity. As a result, Vale boosts iron ore output toward its 2026 target of 340–360mn t.

Dry stacking and safety reshape Vale’s processing strategy

The mine restart follows a five-year renovation program. It resumed operations on 4 September. The project uses natural moisture processing and dry stacking. This eliminates tailings dams at the site. Dry stacking removes water from waste, which is then compacted and stacked. This approach reduces catastrophic failure risks. Vale is retiring upstream dams to cut safety, legal, and financial exposures.

Production outlook and waste reprocessing lift volumes

Vale produced 83.6mn t of iron ore in 2Q25. This was up from 80.6mn t a year earlier. Management aims to produce up to 335mn t in 2025. The new mine supports that guidance. Capanema also reclaims ore from legacy waste piles. Vale produced nearly 9mn t from tailings in 1H25. The company targets a 10pc output boost from waste reprocessing by 2030.

The Metalnomist Commentary

Capanema’s restart tightens Vale’s path to 2026 volume targets while de-risking tailings. Dry processing and tailings re-mining can sustain margins if price volatility persists. The strategy also rebuilds social licence after Brazil’s dam failures.