The world's largest iron ore mining group Vale plans to build a 7.66 GW solar power plant in southeastern Brazil's Minas Gerais state, said the company this week.
Vale will funnel $500 million into the development of the Sol do Cerrado Solar Project, the first one of its kind, to provide clean power to its operation.
The project is composed of 17 sub-parks, with a total capacity of 7.66 GW, according to the company. The company will also build an elevator substation and a transmission line and implement a connection bay at the 230-kV Jaiba substation.
After coming online in the fourth quarter of 2022, Sol do Cerrado is expected to generate an average of 193 MW of solar power each year, enough to cover 13% of Vale's estimated demand in 2025.
Minas Gerais is a Vale's key iron ore production base in Brazil. Currently, its iron ore production in the region is mainly powered by hydropower. Vale said the planned solar project will diversify its energy options, by which it will help reduce its operation cost of $70 million per year.
The project is a part of Vale's promise to reduce carbon commission, which it plans to invest as much as $2 billion. The mining giant is aiming at achieving 100% self-production of renewable energy in Brazil by 2025 and 100% renewables consumption globally by 2030.
(Writing by Alex Guo Editing by Tammy Yang)
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