Brazil’s Gerdau is investing $667 million in new facilities in the state of Minas Gerais

The Brazilian mining and steel company Gerdau SA announced its intention to invest $666.64 million in new production facilities in the state of Minas Gerais by 2026. By implementing the project, Gerdau plans to increase iron ore production and reduce production emissions. Reuters reports about it.

The new production platform will increase the capacity of the Miguel Bournier mine in Gerdau to 5.5 million metric tons of iron ore per year. The launch of the project is planned for the end of 2025. The iron ore will be produced using the dry stacking method to dispose of 100% of mining waste. This model eliminates the need to use a dam.

Raw materials from the new plant are planned to be used at the company’s four steel plants located in the state of Minas Gerais.

As GMK Center reported earlier, Gerdau announced the investment of 5 billion Brazilian reals ($954.7 million) to the state of Minas Gerais (Brazil) in 2023.

In 2022, Gerdau’s net revenue became a record and amounted to 82.4 billion reais, 30% of which was received from operations in Minas Gerais. Gerdau hopes that production here will meet high requirements, and the added value of products will increase income for both the company and the state budget. According to the CEO of the company Gustav Werneck, 60% of the investments planned for the current year will be directed to operations in the state.