The Vale Southeastern System is comprised of three complexes: Itabira, Minas Centrais and Mariana. The system is located in the Minas Gerais state of Brazil and is fully integrated with mines, railroads, maritime terminals and a port. The mineralization at the Southern System has high ratios of itabirite ore relative to hematite ore type. Itabirite ore has iron grades of 35-60% and hematite ore has iron grades around 65%.
Production in the Southeastern System started in 1957 at the Itabira complex, which is currently expected to run through the early 2030s. Minas Centrais started production in 1994 and is expected to produce through the late 2050s and Mariana began production in 1976 and is expected to produce through the mid 2050s.
Sandstorm’s royalty covers a portion of the Southeastern System after a cumulative threshold is met. Sandstorm estimates the royalty will cover approximately 70% of the Southeastern System production after the threshold is triggered.
