Iron, Tin, Bauxite and Vanadium

Samarco is continuing its journey of reconsolidation, and in 2023, approved a debt renegotiation deal and a R$1.6 billion investment into the company's production process, increasing production capacity to 60% and constructing new filtration systems. Samarco is also investing heavily in its operational workforce and has plans to hire 600 direct employees. The company's total workforce, over 15,000 strong, now exceeds its pre-2015 levels. Samarco also reports that it has achieved 75% completion on the de-characterization project of the Fundão dam, one of Latin America's largest. Discussing Samarco's gradual recovery of production and operations, Rodrigo Vilela, Samarco's CEO, said: "In 2025, we aim to produce approximately 15 million t of pellets, which positions us as one of the second or third-largest exporters globally, a significant player as we were in the past. Our focus remains on completing this project, which is our primary expectation for 2025."

Discussing some of the technical and operational issues that Samarco is confronting as it continues to revamp its operations, Vilela said that finding use for the enormous volumes of waste material has been the company's principal difficulty: “The primary challenge is consolidating our operations while introducing new technologies, particularly finding uses for our waste materials. We are already constructing roads and pavements using these by-products.”

Beyond Vale, there are new entrants to the iron industry, which include Lhg Mining, part of the J&F Group, the largest private conglomerate in Brazil. J&F Group acquired assets from Vale in 2022, including the Santa Cruz and Urucum mines in Mato Grosso do Sul. Its operations include a fully integrated supply chain, including river ports to transport material via barge through the Paraguay waterway to ports in Uruguay, particularly in Nueva Palmira. Discussing Lhg Mining's rapid adaptation and entrance to the market, Claudio Alves, director of new business, said: "Our 12-month investments since the acquisition include growing our team by 200%, recruiting senior leadership, and revamping processing systems to handle 12 million t/y, now aiming for 16 million t/y."

The company has been able to lean on the financial muscle of the J&F Group, investing heavily in updated processing systems, new fleets of equipment and qualified teams. Targeting European markets for export, Lhg Mining is producing high-grade lump ores and is depending on Europe's transition from high to low-emission industries, introducing carbon pricing and ESG sensitivity. Lhg Mining's growth has been explosive, but the company has encountered some bottlenecks. This year's principal challenge has been a drought in the region, impacting the river barge transportation system. As Alves explained: "Our main issue involves managing complex logistics in a remote region bordering Brazil and Bolivia. Our ore travels 2,500 km along a river route to reach a shallow water port, necessitating innovative solutions to streamline operations and lower costs."

3A Mining, an iron producer that operates in the same region, has an installed capacity of 1.5 million t/y and depends on the same transportation system as Lhg Mining. The drought has postponed 3A Mining's efforts to double production figures. Fabio Assumpção, mining operations, logistics & sales director, said: "Transportation constraints in Mato Grosso do Sul have been a challenge. The region has experienced a severe drought, hindering the transport of materials from the Corumbá river port to the maritime port in Uruguay. As a result, we have limited our production capacities this year."

In Minas Gerais, the country's mining heartland, Belo Horizonte-based LGA Mineração e Siderurgia is an iron ore producer with a capacity of 2 million t/y at the Congonhas plant. The company, which supplies Vale, CSN and Gerdau, is currently in the engineering phase of increasing its capacity to 4.5 million t/y. Discussing how LGA has diversified its business by establishing commercial partnerships, Paulo Toledo, LGA Mineração e Siderurgia's CEO, said: "Before the Mariana accident in Brazil, we invested in equipment to treat our waste, specifically in 2015 when we established a collaboration with Jing-Jin, the largest manufacturer of filter presses globally. Today, we represent them in Brazil, supplying equipment for mining, waste treatment, water treatment, chemistry and fertilizers."

Brazil is also one of the world's leading tin producers. Mineração Taboca, which in 2008 became part of the Peruvian company Minsur, operates the Pitinga mine, a rich tin and tantalum mine located in the Amazon Region, and a tin smelter in Pirapora do Bom Jesus, near São Paulo. Mineração Taboca is the leading mining company in Amazonas, and Eduardo Orban, Mineração Taboca's CEO, discussed the unique operating environment: "We are adjacent to a biological reserve and two Indigenous communities; with one of them we have a long-term agreement to give access to our properties. Maintaining good relationships with these communities is crucial."

Mineração Taboca has invested heavily in its ESG credentials. Orban continued: "We have responsible mineral initiative certifications for our tin and tantalum smelters, controlling the entire supply chain from our mines to smelters. Taboca is ISO 9001, ISO 14001, and ISO 45001 certified. We follow ICMM sustainability requirements."