Vale announces USD 4.1 bln investment in Argentina

Brazilian mining company Vale has recently announced an investment of USD 4.1 billion in the exploration and production of potassium in Argentina. The figure represents the largest investment made by a Brazilian company in the country. The plan includes the construction of a facility, a railroad section with 350 kilometers and the construction of a thermal power plant. Investments begin in 2010 with USD 300 million, said Vale. With the project Argentina will become the main exporter of potassium of the region. In addition, 8.000 job positions will be created.

Publication: BIS - Business Information Systems
Provider: Business Information Systems
November 23, 2009

Anglo Ferrous granted right to mine at Pedra Branca do Amapari

Brazil's minerals production department (DNPM) has officially given multinational miner Anglo American (LSX: AAL), through its Anglo Ferrous Brazil subsidiary, possession of iron ore mines in Pedra Branca do Amapari, Amapá state, DNPM said.
The document gives Anglo Ferrous the right to process iron ore in the Pedra Branca do Amapari district. The mines in question are part of the Amapá iron ore system.

The approval is an important step in the consolidation of activities regarding Pedra Branca mineral reserves, according to the director of Anglo Ferrous' Amapá iron ore system, José Luiz Martins.

"This gives us the security to continue investing in Amapá and therefore increase iron ore production in the state," Martins was quoted as saying by local press.

Anglo American took control of the Amapá system when it purchased Brazilian miner MMX's IronX division in August 2008.

Publication: Business News Americas - English News
Provider: Business News Americas
September 1, 2009

ArcelorMittal tackles iron mining operations

Jose Francisco Martins Viveiros, executive with ArcelorMittal, is moving from London to assume as president AcerloMittal Serra Azul, the filial that would manage the iron mining operations acquired from London Mining in a US$810mil deal by mid last year. Viveiros mission is to bring iron ore production to supply 70% of the steel major needs. He will manage, in addition to Serra Azul, at Minas Gerais state, the iron and manganese operations of MPP, at Corumba (Mato Grosso do Sul), purchased last August. There are other mining exploration concessions in Bahia state, part of the Brazilian iron assets. Serra Azul should have an output of 5mil m tons of ores in 2009, of which 2.1mil exported to Arcelor's sister companies.

Expansion is tied to the evolution of the iron market and Viveiros keeps an eye in the dry metallic ton unit (DMTU) prices to base investment decisions. He ponders the uptrend in commodity prices was unexpected as well as the downtrend that now starts. Uncertainties are high and there are no tools to measure and predict what the future holds. There are other concerns to flow off Serra Azul ores, one of them is the denial by the Rio de Janeiro authorities, of the project of ArcelorMittal to have its own port terminal at Itacuruca (Sepetiba Bay) in association with Brazore (Adriana Resources). It means exports would continue via the terminal of Vale while alternatives are being sought.

Publication: SABI - Business News
Provider: South American Business Information
February 6, 2009