Dow Jones reported that Brazilian iron ore miner MMX Mineracao e Metalicos SA signed a contract worth BRL 255 million with Australia WorleyParsons for engineering, supplies and management services at the expansion of its Serra Azul project.

MMX said in a statement that the BRL 4 billion Serra Azul expansions involves construction of an iron ore enriching plant, a railroad terminal and a 10 kilometer conveyor belt that will carry ore from the plant to the rail terminal. The expansion will be built in prefabricated modules that will speed the project's development.

MMX controlled by Brazilian billionaire Eike Batista has been operating mines at Serra Azul, famous for its high quality ore since 2008. The company current production capacity at the site in Minas Gerais state, southeast Brazil is 8.7 million tonnes a year. The enrichment plant to be installed in the current expansion will have 24 million tonnes a year of ore-processing capacity allowing MMX to triple its output at the site.

Signing of the engineering contract follows MMX August 29 announcement that it had gained a preliminary license from environmental authorities to expand its Serra Azul unit.

(Sourced from www.foxbusiness.com)