Vale starts production at phosphate mine in Peru

Vale said it began producing phosphate at the Bayovar mine in northern Peru, in advance to the formal opening which will be held on August 5. The deposit has an annual production capacity of 3.9 million tons of phosphate rock and took US$ 566 million in investments since 2007 when its construction started. Several infrastructure facilities such as a phosphate concentration plant, a 32-kilometer road, a conveyor belt system and a maritime terminal were also built in the venture.

Bayovar's output will mainly be shipped to Brazil, where demand for fertilizer inputs is rising. Brazil imports about 90% of the potash and 53% of the phosphates used to make fertilizers in the country, Vale said in a statement, adding that Bayovar will help strengthening the company's position as a major player in the fertilizer industry.