Bloomberg reported that Vale SA won approval to exploit a deposit of the steelmaking ingredient in the Brazilian state of Minas Gerais as it seeks to replace dwindling production.

According to statement in Brazil’s official gazette, Rio de Janeiro based Vale received the concession to work at a mine in the municipality of Mariana. The permit will allow an estimated 20 million tonnes of iron ore production per year on reserves of 64.9 million tonnes.

Vale is seeking to expand output as aging mines and permitting delays in Brazil led to a market share loss to Australian producers in the last five years. The company’s iron ore production in the southeastern region where Mariana is located declined 7.4% in the Q1 from a year earlier.