Sul Americana de Metais SA is to develop an integrated iron ore project in Brazil which will produce 25 million tonnes per annum of 65% Fe pellet feed, with initial production expected in 2013.
Sul Americana has sufficient JORC-compliant resources in its two principal properties in the state of Minas Gerais to support a mine life in excess of 20 years. In addition, it has potential resources that would significantly increase the mine life. It has developed an integrated mine pipeline port project, the principal elements of which have been reviewed by independent experts.
The estimated capital expenditure to develop the project is approximately USD 2.6 billion, to be incurred between 2010 and 2012. Given the magnitude of the investment, Sul Americana is analysing financing options and considering strategic alternatives to take the project into production.
Mr Haroldo Fleischfresser CEO of Sul Americana said that "We have developed a cost efficient process route tailored to the specific characteristics of our ore. This process, together with an efficient logistics system, contributes to an expected FOB cost for pellet feed of less than USD20 per tonne."
Source: Steel Guru
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