It is reported that Anglo American's production profile will change dramatically over the next two years as its four largest expansion projects are commissioned.
Three of these, the Kolomela iron ore mine near Kathu in the Northern Cape, the Barro Alto nickel mine and smelter in Brazil and the Los Broncos copper project in Chile will be in full production for the first time in 2012. The fourth and largest project is the Minas Rio iron ore project in Brazil, which raised the ire of many Anglo investors two years ago.
Details of progress with this project were released last week, indicating that forebodings and criticism had been overdone. If Ms Cynthia Carroll and her team succeed in getting Minas Rio into operation by the second quarter of 2013, she will silence her critics by successfully completing one of the world's largest mining projects.
Minas Rio, however, comprises three projects. These include the construction of an enormous iron ore mine in the mountainous central portion of Brazil in the mineral rich province of Minas Gerais, a 525 kilometers slurry pipeline from the mine to the Acu port in the Rio de Janeiro province, as well as a harbor quay for exporting its 26.5 million tonnes of iron ore a year.
Mr Stephen Hall project director at Minas Rio said that more than 70% of the earthmoving work for the mine and enrichment plants have been completed. The rock breaking plant is 65% complete, the sorting plant 85%, a reagent plant 78%, and the primary milling plant 56%. Structural and civil construction is 33% complete.
The biggest stumbling block was the servitudes that had to be obtained from 1,423 landowners for laying the pipeline from the mine to the new port.
According to Mr Hall, contracts have been concluded with 1308 (or 92%) of these landowners. A total 183 kilometers of the pipeline has been laid. Three of the four tunnels in mountainous areas have also been built and the fourth virtually completed.
This is the world's longest slurry pipeline. It is considerably cheaper to build than a rail line, but the operating cost is the ultimate benefit.
Mr Stephan Weber CEO of Anglo's iron ore unit in Brazil said that it will cost around USD 2 per tonne to pump the slurry from the mine to the port, dry it out and ship it. At the port, the 440 meters long quay and a 3 kilometers access bridge to the quay have already been completed.
The Kolomela mine, which will be fully operational at the end of this year at a cost of USD 1.1 billion, will add 9 million tonnes of iron ore to Anglo's production.
(Sourced from www.miningmx.com)
