Itaminas announced a R$1.5 billion investment to modernize its operations in Sarzedo. The project includes expanding production volume and upgrading processing to obtain higher-quality iron ore, contributing directly to the decarbonization of the steel industry.
The new management, officially presented at the New Times event held on December 16, represents a transformative phase, with sustainability and carbon reduction in the production process as central pillars.
The main strategy for achieving these goals is to raise the iron content of the ore from 62.5% to 67%, positioning Itaminas as a strategic supplier for the European and Asian markets, which lead ambitious carbon neutrality targets. To this end, the company is investing in processes such as:
- Grinding: breaking the ore down into the smallest possible particle;
- Spiral separation: magnetic separation;
- Flotation: an additional separation method.
These improvements will enable the production of ore with fewer impurities, ideal for use in direct-reduction blast furnaces, which are essential for green steel production.
The total investment is expected to be completed by 2033, though Itaminas is working to bring that timeline forward to 2030. The initial contribution of R$150 million was made using the company’s own resources, launching the second crushing process. Itaminas is currently in the process of raising between US$100 million and US$150 million, with an expected execution of R$350 million in 2025. Starting in 2027, new financing rounds are planned for the following stages.
With this modernization, Itaminas’ production will jump from 6.5 million tonnes/year to 15.5 million tonnes/year, a volume for which the company already holds an environmental license. By the end of the investment period, 70% of production is expected to be high-iron-content ore. This grade is strategic, since only 8% of global production reaches that concentration.
According to Rodrigo Medrado Géo, Itaminas’ Vice President of Finance, by 2050 there will be a gap of 200 million tonnes between demand and supply of high-quality ore. Today, this product is valued at 15% above standard ore. “Green steel production is a global demand. Europe already charges fees to steelmakers that do not produce low-carbon-emission steel,” said Thiago Toscano, President of Itaminas.
Itaminas currently ranks tenth among the largest iron ore producers in Brazil. The company generates more than 700 direct jobs and around 2,000 indirect jobs, with 85% of employees living in Sarzedo, reinforcing its commitment to the region’s economic and social development.
The governor of Minas Gerais, Romeu Zema, attended the event and highlighted the importance of responsible mining. “We want companies that do what Itaminas is proposing: mining with respect for people and the environment. Those who are not responsible will pay dearly,” he said, referring to the challenges faced by the sector.
The Attorney General of Minas Gerais, Paulo de Tarso Morais Filho, was also present and reinforced the role of the Public Prosecutor’s Office as a partner in responsible entrepreneurship. Meanwhile, the Secretary of Economic Development of Minas Gerais, Fernando Passalio, highlighted the state’s role as a reference in the energy transition, driven by the production of lithium, niobium and now high-quality iron ore.
Mining company to invest R$1.5 billion by 2033 – Jornal Minas
