French-based seamless pipe producer Vallourec has announced plans to significantly increase the production capacity at its Pau Branco iron ore mine in Minas Gerais, Brazil. The expansion, recently greenlit by Brazilian regulatory bodies, aims to enhance the mine's output from 1.2 million to 3.5 million tons annually by 2027.
This project will start by year-end, focusing on the initial phase while concurrently processing permits for its subsequent stage. Vallourec intends to use part of the increased output to supply raw materials to its own operations, specifically the Vallourec & Sumitomo Tubos do Brasil steel smelting plant, also located in Minas Gerais.
The plant currently boasts a blast furnace with a capacity of 350,000 tons of pig iron per year and an electric arc furnace capable of producing 1 million tons of steel annually. However, given the production capabilities of its furnaces, Vallourec also plans to sell a portion of the iron ore to third-party buyers.
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