Gerdau announces construction of pipeline in MG – 06/15/2023 – Market

Steelmaker Gerdau, Brazil’s largest steel producer, announced this Thursday (15) in Belo Horizonte an investment of R$ 3.2 billion in Minas Gerais, which includes the construction of a pipeline linking the company’s mine in Ouro Preto to the plant it maintains in Ouro Branco, both cities in the central region of the state.

The amount will be contributed between 2023 and 2025 and is part of a program called by the company a sustainable mining platform. The pipeline will be around 15 kilometers long and have the capacity to transport 5,500 tons of iron ore per year. It is expected to start operating in 2026.

A little over a month ago, Gerdau announced investments of R$5 billion in Minas Gerais in 2023. According to Gustavo Werneck, the company’s CEO, part of the R$3.2 billion for the period is included in this R$5 billion.

Transport of iron ore between mine and plant is currently done by truck. The company’s expectation is that 5,000 jobs will be generated over three years with the investments planned for the period.

During the investment announcement, Werneck stated that the company reached 100% dry stacking in iron ore exploration in the state. “We haven’t sent tailings to dams for a few months now,” he said.

The company has two dams for depositing tailings. One has already been decommissioned. The second, according to information from the steelmaker, will go through the process by the end of this year. “It is possible to do mining, to produce steel in a sustainable way”, declared Werneck.

Transfer

During the announcement, the CEO of Gerdau also stated that the company will transfer the headquarters of the mining and flat steel operation from São Paulo to Belo Horizonte. “It’s one more sign of Gerdau’s growing presence in the state,” he said.

The governor of Minas Gerais, Romeu Zema (Novo), participated in the announcement. “A state like Minas Gerais, which has yet to resort to the fiscal recovery regime, like other states, is a state that cannot afford to lose any business,” he said.