Minas Centrais (Southeastern System) iron ore mine

Minas Centrais is a mining complex owned and operated by Vale with its western boundary located approximately 10 kilometres east of the city of Belo Horizonte in Minas Gerais state, Brazil. The complex is comprised of one operating mine, Brucutu, two depleted ones, Gongo Soco and Água Limpa, and the Apolo project. Minas Centrais produces a mixture of fines and concentrate products for the seaborne export market and Vale's pellet plants in Tubarão. In February 2019, a court in Minas Gerais ordered Vale to suspend activities at Brucutu's Laranjeiras dam as a result of a high risk of failure presented by the structure. While Vale has regained the licence to restart 40% of Brucutu's capacity through the dry-processing route, Laranjeiras restart still remains uncertain. Minas Centrais' C1 direct cash cost increased substantially in 2021 primarily as a result of higher diesel prices. Going forward, we anticipate a hike in the average cost outlook for the operation.