Asset Report
Vargem Grande (Southern System) iron ore mine
Report summary
Vargem Grande is a mining complex owned and operated by Vale with its northern boundary located approximately 15 kilometres southeast of the city of Belo Horizonte in Minas Gerais state, Brazil. The operation produces a mix of fines and concentrate products primarily for the seaborne export market but also to the namesake pellet plant and domestic customers. On 25 January 2019, Vale confirmed the rupture of an upstream tailings dam located at its Córrego do Feijão mine, part of the Paraopeba complex. Since then, multiple mines from the company in Minas Gerais were forced to scale down or close capacity due to new safety protocols in Brazil. This resulted in Vargem Grande running 65% and 15% below its nominal capacity rate in 2019 and 2020, respectively, before returning to full speed in 2022. Vargem Grande's C1 direct cash cost increased substantially in 2022 primarily as a result of higher diesel prices. Beyond 2023, we anticipate a hike in the average cost outlook for the operation.
Table of contents
- Summary
- Key issues
Tables and charts
This report includes 13 images and tables including:
- Vargem Grande (Southern System) Emission Intensity Quartile ranking – Total global production- Tonnes of ore
- Detail Map
- Participation
- Marketable reserves (at 01/01/2023)
- Production
- Production
- Operations
- Infrastructure
- Cash cost
- Cash cost
- Capital cost
- Product quality
- Economic assumptions
What's included
This report contains:
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