# Gerdau Cuts Strategic CAPEX from US$1.7bn to US$952m, Bets on Iron Ore Mine

*Miguel Burnier, a US$659 million project in Minas Gerais, expected to deliver 70% of forecast EBITDA gains.*

- Published: 2025-10-01
- Updated: 2025-10-02
- Section: Insights
- URL: https://brazilstockguide.com/insights/gerdau-cuts-capex-2025-investor-day/

![](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/08/gerdau-aco-sustentabilidade-siderurgia-carbono.jpg?fit=1024%2C576&ssl=1)

**By Brazil Stock Guide –** Gerdau S.A. (B3: GGBR; NYSE: GGB) has revised their strategic investment plan, trimming total CAPEX from **R$9.2 billion (US$1.7 billion) to R$5.2 billion (US$952 million)** through 2027. Of that amount, **R$4 billion (US$733 million) has already been deployed**, with **R$1.2 billion (US$220 million) still to be invested** over the next two years

The shift, announced during **Investor Day 2025**, reflects the removal of completed projects, the suspension of certain initiatives in Brazil due to weak local demand, and a reduction in the expansion plan for the **Midlothian plant in the U.S.**. Conversely, the **Miguel Burnier mining project in Minas Gerais** saw its budget increase to **R$3.6 billion (US$659 million)**, driven by currency effects and an expanded scope

**Mining as a game-changer**
Miguel Burnier has become the company’s transformational bet: it is expected to deliver **R$400 million (US$73 million) in EBITDA by 2026** and up to **R$1.1 billion (US$202 million) annually** after ramp-up. The project includes 5.5 million tons/year of high-grade pellet feed (65%), integrated logistics via ore pipeline, and 40 years of certified reserves.

Altogether, Gerdau’s “Main Projects” are forecast to add **R$1.5 billion (US$275 million) in annual EBITDA** once fully matured. The company emphasized, however, that the numbers are subject to market volatility and foreign exchange swings, and do not represent performance guarantees.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/gerdau-cuts-capex-2025-investor-day/