Name and Location
Carajás S11D (S11D) iron-ore project, Pará, Brazil.

Client
Vale.

Project Description
S11D is named after its location – orebody S11, Block D. The mining potential of orebody S11 is ten-billion tons of iron-ore and that of Block D 2.78-billion tons of iron-ore.

The project is the largest project in the history of Vale and the iron-ore industry.

The project has a nominal capacity of 90-million tonnes a year of iron-ore with proven and probable reserves of 4.240-billion tonnes and an average ferrous content of 66.7%, low impurities and estimated cash cost (mine, plant, railway and port after royalties) of $15.00/t.

CLN S11D will increase Vale’s logistics capacity to 230-million tonnes a year and involves the construction of a rail spur, new railway sections with dual tracks, rail terminals and onshore and offshore investments.
In line with Vale’s long-term objective of sustainable value creation, it has developed technological solutions focused on environmental protection, with more efficient use of natural resources and the reduction of pollutants emission.

The truckless mining concept will enable the replacement of off-road trucks with a structure of excavators and mobile crushers, which will extract the iron-ore and feed the conveyor belts that will transport it to the beneficiation plant.

The processing of iron-ore using its natural moisture (dry process) is another technology that will mitigate the environmental impacts. This technique eliminates the generation of tailings with the maximum use of ore, since the finest feeds, which would be lost in the conventional process, are within the final product.

Once the S11D mine and plant are operating, water consumption will decrease by 93% and fuel consumption by 77% of water, allowing for a 50% cut in greenhouse-gas emissions, compared with conventional methods. The dry process will also reduce electricity consumption of 18 000 MW a year and eliminate the need of a tailings dam, minimising the interference in native environments.

Value
The total capital expenditure (capex) for S11D is $19.671-billion, encompassing the development of the mine and processing plant ($8.089-billion) and logistics ($11.582-billion).

Vale has already spent $2.736-billion. Capex will be executed until the end of the ramp-up in 2018, although expenditure is expected to be more concentrated between 2014 and 2016.

The capex for CLN S11D comprises investments in logistics of $10.363-billion, $1.036-billion of rolling stock and US$183- million transferred from CLN 150 to CLN S11D.

Duration
S11D is expected to start-up in the second half of 2016 and to deliver full capacity production in 2018.

The start-ups for CLN S11D will occur from the first half of 2015 to the second half of 2018.

Latest Developments
The Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis (IBAMA) has awarded Vale the installation environmental licence (LI) to the S11D iron-ore project, which is part of the project’s second phase of licensing, which authorises the plant construction.

With the issuance of the LI, Vale’s board of directors has approved the complete S11D programme, comprising investments in the mine, the processing plant, railway capacity and the port.

Meanwhile, Vale reports that the engineering is almost fully completed and 23% of the equipment and services packages for the whole programme (S11D and CLN S11D) are contracted and 45% of the packages are to be hired, with firm proposals.

As of the end of May, S11D was at 44% of physical progress at the mine and processing plant, as a result of Vale’s strategy to build modules outside the construction site.

The CLN S11D was at 8% physical progress.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
S11D has faced delays, as Vale investigated risks to local plants and animals and studied potential archaeological sites in and around the proposed mine site.

Contact Details for Project Information
Vale, Roberto Castello Branco, tel +55 21 3814 4540 or email Roberto.castello.branco@vale.com.