Brazil mining and metals capex watch

Canadian copper and gold miner Ero Copper will invest US$342mn-389mn in 2023 in Brazil.

"Forecasted capital expenditures for 2023 include meaningful investments in growth projects that are, collectively, over the next two years, expected to double the company's copper production relative to 2022 production results as well as further increase gold production at the Xavantina operations," according to a press release.

Ero Copper has a 99.6% interest in Brazilian copper miner MCSA, owner of the Caraíba asset in Bahia state, including the Pilar and Vermelhos underground mines, the Surubim open pit mine, and the Tucumã copper project in Pará state. It also controls 97.6% of NX Gold, which owns the Xavantina silver-gold mine in Mato Grosso.

US$150mn-165mn were earmarked for construction of the Tucumã project, US$80mn-90mn for Pilar projects, including a Caraíba mill expansion and a new Pilar external shaft, and US$31mn-40mn for exploration, including for the Caraíba nickel program.

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Minas Gerais-based steelmaker Usiminas plans to spend 3.6bn reais (US$705mn) through 2026. The company also has an iron ore JV with Japan’s Sumitomo, called Mineração Usiminas.

Of the total, 2.7bn reais will be for the renovation of blast furnace 3 to improve operations and create environmental benefits.

Usiminas president Alberto Akikazu Ono presented the investment plan during a meeting with governor Romeu Zema.

"Investments of this amount generate opportunities for a large chain of suppliers, local and state ones," Zema said in a press release.

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Iron ore giant Vale is projecting capex of US$6bn in 2023, compared with US$5.5bn in 2022.

The company told a recent investors’ presentation that annual capex between 2024 and 2027 will fluctuate between US$6bn and US$6.5bn.

Vale allocated US$180mn to exploration this year, compared with US$170mn in 2022, as it looks to expand reserves and diversify production. In 2024, 2025 and 2026 exploration spending is projected at US$250mn, US$300mn and US$350mn.

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Iron ore pellet producer Samarco plans to invest 1.6bn reais this year.

Of the total, 721mn reais will go to decommissioning tailings dams and the rest to reach full capacity of 30Mt/y, expected for 2028. 

The Vale-BHP joint venture aims to produce 8Mt-9Mt of iron ore pellets this year. In January-November last year, it produced 7.5Mt.

The company halted operations from late 2015 to December 2020 because it was implicated in major disasters caused by tailings dam collapses.

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Iron ore miner CSN Mineração's 2023-27 capex involves 13.8bn reais (US$2.7bn).

A balanced performance is expected for 2023 in the iron ore segment due to the potential recovery in Chinese demand. Prices have come under pressure due to the zero-COVID policy.

With the investment, the company looks to increase production and third-party iron ore purchases to 68Mt in 2027.