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Ferrous Resources secures preliminary licence for slurry pipeline
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Thursday, 28 Jul 2011

Brazilian iron ore mining company Ferrous Resources has been awarded the preliminary licence for its 400 kilometers slurry pipeline. The pipeline will connect its Viga mine, in Congonhas, Minas Gerais, to its port terminal in Presidente Kennedy, Espírito Santo state. The pipeline is expected to transport 25 million tonnes a year of iron ore from 2014.

The preliminary licence is a significant milestone in the development of Ferrous’s fully integrated iron ore project in Brazil. The PL marks the approval of the environmental impact study for the slurry pipeline by the Brazilian Institute of Environment and Natural Resources. This follows a period of extensive engagement with local authorities and communities, including 70 public hearings, to identify and deal with all stake holder concerns.

The company will now begin to apply for an installation licence, which, when awarded, permits construction of the pipeline to start. Ferrous expects the IL to be awarded in the second half of this year.

The company announced that in less than a year it has succeeded in acquiring 90% of land through which the proposed pipeline will pass. It is making significant progress with its land negotiations, making more rapid progress than past projects of a similar nature in Brazil, and remains confident of securing the remaining 10% of land.

Mr Mozart Kraemer Litwinski CEO of Ferrous Resources said that "I am pleased to announce we have been awarded the PL for our slurry pipeline. It is a significant achievement and demonstrates our commitment to the environment and wellbeing of local communities, which is why we won 2011's Human Being Award for commitment to corporate social responsibility."

He added that "Securing the licence also caps a period of intense activity. We have now become a fully operational company, producing high quality iron ore from two of our flagship mines, Esperanca and Viga, and have made our first international shipment 162,700 tonnes of sinter feed to China. We remain on track to meet our production target of 2.5 million tonnes by the end of 2011 and to realize our potential of becoming one of the top five producers of iron ore in the world."

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