R$3.2 Billion Investment Transforms Miguel Burnier into Sustainable Mining Platform
Brazilian steelmaker Gerdau is approaching the commissioning of its Miguel Burnier iron ore expansion project in Ouro Preto, Minas Gerais. The project, which reached 91% physical progress as of early 2026, represents an investment of R$3.2 billion (approximately US$550 million) and will create a Sustainable Mining Platform with annual capacity of 5.5 million tonnes of iron ore.
Project Features
- Production capacity: 5.5 million tonnes per year of high-grade pellet feed with 65% Fe content
- Internal consumption: 3 million tonnes will supply Gerdau's Ouro Branco steelmaking facility in Minas Gerais
- External sales: 2.5 million tonnes available for commercial sale — the first time Gerdau has structured production above internal demand
- Dry stacking: 100% dry tailings stacking, eliminating the need for conventional dam infrastructure
- Mineroduto: 13 km pipeline connecting the mine to the Ouro Branco steel plant
Timeline and Ramp-Up
The project is entering its ramp-up phase with a duration of approximately 12 months, targeting full production from 2027. A new UTM 2 (Unidade de Tratamento de Minério 2) beneficiation plant, constructed by Construcap, was planned for completion in early 2026. Gerdau projects total 2026 capital expenditure of R$4.7 billion, with the mining expansion being a priority investment.
Strategic Significance
CEO Gustavo Werneck noted that Gerdau has operated in mining for two decades but never structured surplus production for commercial sale. The Miguel Burnier expansion positions the company to gradually introduce additional volume to the market while maintaining environmental commitments. Gerdau is also advancing other key projects including the Midlothian mill expansion in the US, a new recycling centre in Pindamonhangaba, and the 111 MW Barro Alto solar complex.
