Gerdau sells Varzea do Lopes mine and enhances the sustainability of Miguel Burnier's operations

Brazilian steel company Gerdau has received permission from the Brazilian competition authority (CADE) to sell its Varzea do Lopes iron ore mine in Itabiritu, Minas Gerais, to Grupo Avante as part of its restructuring plan.

Grupo Avante takes over operations

Under the agreement, Grupo Avante will manage all operations and production of iron ore at the mine. In addition, Gerdau will retain the right to refuse to purchase a part of the mine's products as a matter of priority and will bear the costs of closing the mine.

Focus on sustainable mining at Miguel Burnier

After the sale, Gerdau will focus on its Miguel Burnier mine in Ouro Preto, Minas Gerais State. This facility supplies iron ore directly to Ouro Branco's steel mill. The company has allocated 3.2 billion Brazilian reais ($593.3 million) to expand Miguel Burnier's capacity to 5.5 million tons per year. This move is consistent with Gerdau's broader strategy of focusing on sustainable mining.