Capao Xavier is a mid-sized surface mine and part of Vale's Paraopeba complex, ultimately falling under Vale's Southern System operations. The mine is located in Brazil's Quadrilátero Ferrífero (QF) region and approximately 15 kilometres south of Belo Horizonte. Due to the long distance between the mine and the Guaiba port via the shared MRS railway, almost half of Capao Xavier's C1 direct cash cost is related to transport. The mine is one of Vale's last remaining high-grade deposits in the QF region and, therefore, its ore is used for blending with lower-grade materials from other mines. We expect that, unless further work is done to extend its life, the deposit will deplete in 2019.