By Brazil Stock Guide – Vale SA (VALE3) will begin construction in 2026 on a new processing plant in Minas Gerais designed to produce iron ore from mining tailings, advancing its circular economy strategy.
The facility, with an annual capacity of 2 million metric tons, is expected to start operations in 2027. It will be integrated with the decharacterization process of the Sul Superior dam, part of the company’s broader effort to eliminate upstream tailings structures.
The project will be located at the Gongo Soco mine in Barão de Cocais, which has been inactive since 2016. The plant will process tailings from the Sul Superior dam as well as material stored in two existing waste piles at the site. Output will be transported via the Vitória-Minas Railway, a key logistics corridor for Vale.
Vale has been expanding its production from waste materials. In 2025, the company more than doubled iron ore output derived from tailings and waste, reaching 26.3 million tons, a 107% increase year-on-year. About 80% of that volume came from operations in Minas Gerais.
The company estimates that by 2030, roughly 10% of its annual iron ore production will come from circular sources. Construction of the new facility is expected to take approximately 19 months and has been designed to operate alongside the dam decharacterization timeline.
“We opted for a magnetic concentration solution that maximizes the recovery of iron ore contained in tailings. The reuse of these materials will take place over the coming years, following the decharacterization schedule of the geotechnical structure,” said Juliana Cota, director of inactive mines for Vale’s Southeast corridor.
The Sul Superior dam is part of Vale’s program to eliminate upstream tailings structures. The company has so far removed 19 of the 30 targeted dams, reaching 63% completion.