Rio de Janeiro, Brazil — 27 September 2012 – Vale, the world’s second-largest mining company, is likely to make its US$19.5 billion Serra Sul iron ore mine project in Brazil a priority over the similar development in the West African nation of Guinea.
Reuters quotes a source with knowledge of the firm’s strategy as saying that the emphasis on the project in the Amazon comes as Guinea “’ which holds rich deposits of iron ore and is the world’s top supplier of the aluminium ore bauxite “’ struggles to maintain foreign investment amid deepening political turmoil, labour unrest and a government review of mining contracts.
The granting in June of a so-called preliminary environmental licence for the Sierra Sul project, which includes railway and port investments, means the development of the Simandou site in Guinea is less urgent, the source added.
“All things considered, projects need to be prioritised," said the source, who asked not be named as his employer does not allow him to speak to the press. “The priority has become Serra Sul.”
Source: Reuters Africa. For more information, click here.