Segredo and Joao Pereira are two mid-sized surface mines whose production is rolled together. They are situated approximately 35 kilometres south-east of the city of Belo Horizonte. The mines are part of Vale's Itabirito complex, ultimately falling under Vale's Southern System operations. Since Vale does not own 100% of the MRS railway, they must pay market rates for transportation. As a result, transport costs for Segredo/Joao Pereira account for nearly 30% of its total cash cost. Production from both mines combined is expected drop over the next few years as Vale switches output to more-efficient, lower-cost operations.