Samarco, the iron ore pellet joint venture controlled by Vale and BHP, expects to reclaim its position as the world’s second-largest exporter of iron ore pellets by 2028, according to CEO Rodrigo Vilela.
The company plans to invest R$13.8 billion to restore its installed production capacity to full levels, targeting 26-27 million tons annually of iron ore fines and pellets starting in 2028. Current operations run at approximately 60% of capacity, with 15.9 million tons commercialized in 2025.
A key component of the expansion involves tailings recycling. Samarco has produced 300,000 tons of iron ore fines from tailings so far in 2026 and forecasts reaching 2 million tons by 2028, aligning with its broader capacity restoration goals.
Market demand for transoceanic pellets is projected to rise from the current 100-120 million tons annually to above 300 million tons by 2030, driven by supply constraints in the Persian Gulf and growing demand from steelmakers transitioning to low-carbon production methods. Major clients in Europe and Japan are investing in decarbonization projects that require increased pellet consumption, replacing blast furnaces with direct reduction plants.
Samarco’s recovery follows years of disruption after the 2015 dam collapse in Mariana, Minas Gerais, which halted operations. Production resumed in December 2020, and the company has since focused on restoring capacity while addressing environmental and social obligations tied to the disaster.
